The U.S. Treasury Department called for an increase in the national debt limit due to a reduction in reserves

U.S. Treasury Secretary Janet Yellen called on Congress to increase the national debt limit as soon as possible, warning that the administration’s reserves will be exhausted in October, and the country will not be able to fulfill its obligations for the first time in history.

“The most likely scenario is that the monetary reserves and the potential for emergency measures will be exhausted during October… As soon as all available measures and monetary reserves are completely spent, the United States of America will not be able to fulfill its obligations for the first time in our history,” Yellen wrote in a letter to lawmakers.

She warned that delaying the issue could seriously damage consumer and business confidence, increase the cost of short-term borrowing and adversely affect the U.S. credit rating.

“A delay that calls into question the ability of the federal government to fulfill all its obligations is likely to cause irreparable damage to the U.S. economy and global financial markets… With all due respect, I urge Congress to act urgently to protect the full trust and respect for the United States,” Yellen added.

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Author: Ivan Maltsev
The study of political and social problems of different countries of the world. Analysis of large companies on the world market. Observing world leaders in the political arena.
Function: Chief-Editor
Ivan Maltsev

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