The United States government could be found in liquidity in August, due to the lack of suspension or recovery of the debt roof by Congress, the Treasury Secretary, Scott Besent, warned Friday. In a letter addressed to the president of the House of Representatives, Republican Mike Johnson, the minister invited elected officials to dismiss this risk for a text voted against parliamentary holidays, which began on July 24.
The first world in the world has reached the threshold in January beyond which, in principle, it is prohibited to request financing. But the treasure took “extraordinary measures”, temporary, to freeze the expense and allow the government to honor its existing deadlines.
Republican elected officials, most in the two Congress cameras, have not yet managed to agree on the technical methods of a suspension or a recovery of the debt roof. “Respect, respectfully, to Congress to raise or suspend the debt limit in mid -July (…) to preserve credibility and trust (of the international community and investors) to the United States,” he urged Scott Besent.
“Chaos in our financial system”
At the end of March, the Congress Budget Service (CBO) had already warned that the United States risked being breach in “August or September 2025” due to lack of parliamentary agreement. The world’s main economy has never experienced a defect in payment, an event that would have catastrophic consequences for the United States. A long time ago treated as a non -partisan subject, the debt roof became a political instrument in the mid -1990s and was the source of dead end that put the United States to the edge of the cessation of payment more than once.
After one of these crises, during the summer of 2011, the Standard Financial Evaluation Agency and Poor’s decided to reduce the United States’s note, deprived of the prestigious AAA. The possible “inability” to vote a text in August “would sow chaos in our financial system and weaken the security and position of the United States,” the minister insisted.
Source: BFM TV
