The US Treasury has warned of another default threatening the United States
The United States faces a default, which can be avoided by once again raising the level of national debt. This must be done before July 31, said US Treasury Secretary Janet Yellen.
In her letter to Congress, Yellen warned congressmen that the level of debt will reach the set maximum as early as August 1, 2021, and from August 2, the US Treasury will be forced to take "emergency measures" to prevent a default.
If the national debt is not frozen or increased, then Washington will face "hard times" and "irreparable damage to the economy." According to Yellen, for this period, the US government has planned serious budgetary expenditures, but the ability to pay off debts will be severely limited. The Treasury Secretary stressed that for all the time, no president has allowed the US to default.
In turn, the White House reacted to Yellen's statement rather calmly. As spokeswoman Jen Psaki said, such warnings are standard practice of the US Treasury, and the debt ceiling will be raised "at the end of the month." According to her, the legislators "raised and froze the ceiling of the national debt almost 80 times." Thus, Psaki "reassured" the American public, confirming that raising the national debt for the US administration is "a common thing."
As previously reported, the US Congress predicted the US federal budget deficit for fiscal 2021 at $ 3 trillion. dollars. As of June this year, the US national debt exceeded 26 trillion. dollars.
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