Janet Yellen warns US Treasure that money may run out in October

US politics & policy changes

Janet Yellen has warned that US Treasury will run out of money next month unless Congress raises lending rates, as Joe Biden’s supervisors are deeply concerned about what could happen. debt repayment.

In a letter to religious leaders on Wednesday, the US Secretary of Treasure said he would not provide “estimates” of financial losses, but of “consequences” and that their costs “could expire in October.”

Increasing the US debt that was the norm in Congress, allowing Treasure to pay off debts of money that former lawmakers already accept.

Ever since President Barack Obama, however, Republican lawmakers have refused to increase interest rates while the White House is under Democrat rule, they often want things that have attracted Capitol Hill interest and sometimes brought the US to the brink of collapse.

In her letter to religious leaders, Yellen announced that even “waiting until the last minute” to reduce potential debt could lead to “business problems and consumer confidence, growing.” short-term loan financing to tax collectors, and it tarnishes the image of the United States ”.

In addition, “delays that cast doubt on the federal government’s ability to do all that is possible could lead to financial problems in the US and global financial markets”, he added.

The increase in U.S. debt could be passed as an independent currency, although it should be included in other financial and budgetary laws that are being considered by Congress in the coming weeks.

This includes expanding the $ 3.5tn security net that is expected to receive not only Democratic votes, but also government funding to avoid closures.

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