• US Treasury Secretary Janet Yellen has warned that the Biden Administration could run out of money by June 1 if Congress fails to increase or abolish the debt ceiling.
• President Joe Biden held a second round of meetings with Congressional leaders at the White House, but negotiations have yet to reach an agreement.
• The Republican-controlled House voted to raise the government’s debt limit by $1.5 trillion, but also imposed a 14% cut on the Biden Administration’s spending which was strongly denounced.
Dire Warning from US Treasury Secretary
US Treasury Secretary Janet Yellen has issued a dire warning to Congress that the United States could face a default on its debt as early as June 1 if lawmakers fail to take decisive action in raising or suspending the debt limit before then. Yellen urged House Speaker Kevin McCarthy and Senate Majority Leader Charles Schumer to agree with President Joe Biden on this issue, stressing that “Treasury will likely no longer be able to satisfy all of the government’s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1.”
Second Round of Meeting between Biden and Congressional Leaders
President Joe Biden held a second round of meetings with Congressional leaders at the White House in order for both parties to come up with a resolution that would allow them to avoid defaulting on their loans. However, conflicting reports have emerged regarding negotiations between the White House and Congress, making it difficult for both sides to find common ground and raising concerns about meeting their deadline before time runs out.
Debt Ceiling Increase Proposed by Republicans
In response, Republican-majority House voted in favor of raising the government’s $31.4 trillion debt ceiling by an additional $1.5 trillion, but also imposed a 14% cut on spending from the Biden Administration which was strongly opposed by Democrats including President Joe Biden himself.
Continued Negotiations Between Both Parties
Negotiations between both parties are ongoing as they try and work out how best they can proceed in light of potential spending cuts in exchange for passage of a debt ceiling hike in Congress without ruffling feathers too much along party lines. Meanwhile, Republican House Speaker Kevin McCarthy is pushing for progress with an eye towards getting President Joe Biden onboard with any plan going forward before time runs out at month’s end when default looms over their heads unless something is done soon enough about it soon enough – elsewise financial ruin awaits them all alike should nothing be done about it soon enough ahead of June’s due date looming closer each passing day now until then when all is said & done & agreed upon & finalized & ready enough only then will we know what fate awaits us all indeed!
Time Running Out for Agreement Before Default Looms
The clock is ticking away ever so quickly now until then when default will become reality rather than just speculation until such time comes whereupon either agreement is reached between both sides elsewise US treasury runs dry totally come summertime 2021! With time running out fast and talks still at an impasse, it remains uncertain whether or not negotiators can find common ground before disaster strikes later this year; only time will tell what happens next in this saga!