Top US official warns it may run out of cash to pay its bills by June 1

According to top US Treasury Secretary Janet Yellen, the US federal government may run short of funds to pay bills in June this year unless the debt ceiling is raised sooner.

“Looking at current estimates, Congress Yellen, in a letter to House Speaker Kevin McCarthy, R-Calif., “must act as quickly as possible to raise or suspend the debt ceiling in a way that provides long-term certainty that the government will continue to make its payments.”

The estimate raised the risk that the United States is headed for an unprecedented default that would shake the global economy.

after this american president Joe Biden On May 9, four top Congress leaders were invited to the White House to deal with the impending crisis.

Biden has invited Republican House Speaker Kevin McCarthy, House Democratic Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Republican Leader Mitch McConnell.

House Republicans are demanding deep spending cuts and other policy changes in exchange for raising the debt ceiling.

But Biden has firmly said he will not negotiate an increase in the debt ceiling but will discuss budget cuts once the new limit is passed. Congress has often combined debt-ceiling increases with other budget and spending measures.

In 2011, a similar debt ceiling battle brought the country to the brink of default and prompted a downgrade of the country’s top credit rating.

Nonetheless, with benefit programs such as Social Security and Medicare accounting for the largest segment of the budget, America’s debt ceiling battle is likely to continue in the coming years and is projected to increase dramatically as the population ages.

As the current debate heats up, Biden, who is seeking re-election in 2024, is using a House Republican proposal to tag his opposition as an economic threat to local economies.