In a statement made on January 19, United States Treasury Secretary Janet L. Yellen announced to the American Congress that they had filled the $31 trillion borrowing limit. In a letter to House Speaker Kevin McCarthy, Yellen said the American economy would be in dire straits if the Treasury Department did not take “extraordinary measures.”
One of these “extraordinary measures” is to increase the debt limit. Since Congress has the power to increase or remove this ceiling, it is assumed that there will be fierce debates between Democratic and Republican representatives and senators in the House and Senate.
Despite the urgency of the situation, it seems like her message did not inspire a bipartisan debate. Instead, both Republicans and Democrats only seemed to harden their respective stands in response. Thus it appears that the foundations have already been laid for this momentous face-off.
Given the Republican Party’s majority in the House, hardline Republicans have exerted significant influence to require that any increase in borrowing limits be associated with spending reductions. On the other hand, The White House has asserted that it will not compromise or converse about raising the debt ceiling.
Experts Warn of Possible “United States Economic Chaos.”
Brian Deese, the National Economic Council Director, urged Congress to responsibly meet their national obligations by raising the debt limit during a speech given on Thursday. He warned that overlooking this duty could have very dire consequences and result in notable economic chaos throughout the country. To Deese, it is critical that our legislators adhere to this important responsibility so as to keep our nation’s economic interests stable and secure.
Brian Deese spoke on “CNN This Morning,” emphasizing the importance of Congress fulfilling its obligation to ensure economic stability. He stated, “This is about economic stability versus economic chaos; it’s a basic, fundamental obligation of Congress.” He went on to detail the potential harm of not abiding by the nation’s obligations, pointing out that “Even just the specter that the United States might not honor its obligations does damage to the economy.”
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