US debt crisis threatens: Yellen warns of dramatic consequences!

US debt crisis threatens: Yellen warns of dramatic consequences!

The USA is faced with a financial sample! According to US Finance Minister Janet Yellen, the country could reach the debt limit in mid-January. In an alarming letter to the Republican spokesman for the House of Representatives, Mike Johnson, and other leading congress members warned Yellen that the Ministry of Finance assumes that the new limit would be reached between January 14 and 23. She appealed to the congress, to maintain the trust in the economic stability and creditworthiness of the USA, as krone.at reported.

On January 2, 2025, a new debt limit will be determined that corresponds to the current status of the outstanding debts. Despite a temporary breathing space, which results from the repayment of securities of around $ 54 billion, the ministry's financial reserve could be exhausted very quickly. The Ministry of Finance plans to take extraordinary measures to ensure government financing if the congress does not act in time. Yellen warned that without rapid measures there is a risk of insolvency what catastrophic effects on the largest economy in the world, Investmentweek.com .

alarming forecasts and urgent appeals

yellen confirmed that the debt limit was not reached immediately on January 2, but the financial scope depends exclusively on the quick ability of the congress. The government could finance its activities in the long term through the so -called extraordinary measures, but this is only a temporary solution. The topic of the adapted debt limit has repeatedly led to political tensions in recent years, and the time is pushing to avert an impending budget crisis.