World
US to go bankrupt, warns Treasury Secretary
The Treasury Secretary said that Congress should raise the debt ceiling or suspend the ceiling.
Washington: The United States Treasury Secretary Janet Yellen has warned that if the debt limit is not increased, the US will be bankrupt by June 1.
The Treasury Secretary said that Congress should raise the debt ceiling or suspend the ceiling.
“Our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1,” Yellen said in a letter to Speaker Kevin McCarthy and other congressional leaders from both parties.
Given that revenue and spending flows are variable, “the actual date that Treasury exhausts extraordinary measures could be a number of weeks later than these estimates,” she wrote.
On the other hand, in response to Ms Yellen's warning President Joe Biden will meet the members of Congress on May 9 to discuss fiscal issues and save the US from bankruptcy.
It is important to remember that Silicon Valley Bank and Signature Bank have gone bankrupt in America.