In a statement, Janet Yellen, the US Treasury Secretary, warned about the country's debt limit. She is a member of Joe Biden's cabinet.
Despite the passage of the Limit, Save, and Grow Act by the House of Representatives, which was aimed at reducing the government's discretionary spending, Federal Reserve Chair Janet Yellen noted that the government may not be able to meet its obligations as early as June 1. The bill was also not supported by Vice President Joe Biden.
As part of the government's efforts to avoid a debt default, she has decided to suspend the issuance of new Treasury securities by state and local governments. This measure could potentially restrict the ability of these entities to manage their finances.
In addition, she criticized House Speaker Kevin McCarthy for delaying the implementation of the legislation, which she said had harmed taxpayers, businesses, and consumers.
Despite the plan passed by the House, she criticized the lack of initiative displayed by the Democrats. She blamed Senate Minority Leader Chuck Schumer and President Biden for failing to address the country's debt issue. If they don't act, the country will not be able to pay its bills.
Instead of sending letters to McCarthy, she should direct her concerns to Biden and Senate Minority Leader Chuck Schumer. The ball is now in the Democrats' court, and they should take responsibility for their actions.