(ConcernedPatriot.com) – On Monday, House Speaker Kevin McCarthy (R-CA) received confirmation from Treasury Secretary Janet Yellen that the nation might approach its debt ceiling as early as June 1.
Yellen insisted that even if the precise “X-date” is still unclear, it is “highly likely” that the US will run out of money to pay its debts by the start of June or June 1 at the earliest.
Treasury Sec. Janet Yellen: "There will be hard choices to make if the debt ceiling isn't raised." pic.twitter.com/jUdRyZwLoG
— The Post Millennial (@TPostMillennial) May 21, 2023
Treasury Sec Janet Yellen won’t discuss U.S. debt ceiling options because “every option is a bad option” except printing more money 💵 pic.twitter.com/xInyjKFj4t
— Jane Adams (@iLoveJaneAdams) May 19, 2023
“These estimates are based on currently available data, and federal receipts, outlays, and debt could vary from these estimates,” stated Yellen. “I will keep Congress informed as new information becomes available.”
McCarthy and President Joe Biden are still amidst contentious discussions about extending the debt ceiling while passing House Republicans’ proposed budget cuts. Yellen wrote to McCarthy on May 15 with a similar assessment.
After months of Biden’s refusal to consider the debt ceiling plan that Republicans eventually passed out of the House in April via the Limit, Save, Grow Act, Yellen issued her most recent letter as McCarthy and Biden met on Monday for additional eleventh-hour negotiations.
After the discussion, McCarthy hinted that he and the president may have discovered areas of agreement: “I thought it was more productive than the other meetings we’ve had, but we still have differences.”
Both Biden and Schumer had been calling for a “clean” debt limit rise, that is, one without the Republican-proposed cuts to expenditure.
U.S. FACING DEADLINE OVER RAISING DEBT CEILING
YELLEN WARNS U.S. COULD DEFAULT ON DEBT BY JUNE 1 pic.twitter.com/pBTJ4DL0Py
— Stalin 🇺🇸 (@StalinCruz) May 22, 2023
McCarthy and House Republicans, who have a slim majority in the House, view that as a non-option and argue that any raise in the debt ceiling should come with conditions due to the excessive government spending and the inflationary atmosphere created by Biden.
After the meeting on Monday, McCarthy claimed that Biden informed him that “for 97 days they wouldn’t meet with us. We are where we are today primarily because of this. The Republicans in the House did something. The Senate was never active.”
McCarthy claimed he told Biden that Republicans would not support tax increases and would instead look for alternative ways to cut spending, such as work requirements for welfare beneficiaries, annual expenditure restrictions, and permitting reform, as part of their hardline criteria for raising the debt ceiling.
Rep. Patrick McHenry (R-NC), the chair of the House Financial Services Committee, also addressed the media following the meeting on Monday, criticizing Biden and his stand-in negotiators for their “lack of urgency” in the face of the impending default.
The White House, according to McHenry, “seems to lack urgency.” “In light of the state of the banking system and the economy, I believe that playing chicken is not a wise course of action.”
An extension of the deadlock between Biden and Republicans beyond June, according to Yellen’s letter, could “seriously harm business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.”
“For securities expiring in early June, the borrowing costs from the Treasury have already increased significantly,” according to Yellen. The failure of Congress to extend the debt ceiling would be extremely difficult for American families, damage our nation’s position as a global leader, and cast doubt on our capacity to protect our national security interests.”
McCarthy said Monday evening that officials from the White House and Congress would continue to work towards a compromise through Monday night. The White House and Congress are pressured to reach an agreement before lawmakers break for the Memorial Day weekend and recess.
Treasury Secretary Janet Yellen is fearmongering and misleading the American public about our nation's debt crisis.
We do not need to raise the debt ceiling by June 1. pic.twitter.com/SPKL4nMp5Y
— Rep Andy Biggs (@RepAndyBiggsAZ) May 22, 2023
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