According to estimates by the independent budget bureau of the US Congress, the government in Washington is at risk of bankruptcy between July and September unless the debt ceiling is raised.
That’s according to a forecast from the Congressional Budget Office on Wednesday. Depending on the development of certain factors, this point could also be reached earlier, according to a forecast released Wednesday by the Congressional Budget Office. The US Treasury Department had previously warned that bankruptcy was imminent by early June at the latest.
Debt ceiling reached
In the United States, Congress sets a debt ceiling at irregular intervals and determines how much money the state can borrow. The debt limit so far is around USD 31.4 trillion (about EUR 29 trillion). The current debt ceiling has now been reached in the US and the US Treasury Department has to draw on the reserves – because the US is no longer allowed to take on debt to pay its bills. If the debt ceiling is not raised soon, the US government could default. That could plunge the global economy into a crisis. Among Republicans in the House of Representatives, however, some hardliners are blocking the issue.
Biden confident
Talks are underway between the administration and Congress, including at the highest level between President Joe Biden and Republican House Speaker Kevin McCarthy. Both recently expressed their confidence that an agreement would eventually be reached. Biden said he would not allow a default to occur and damage confidence in the creditworthiness of the United States.
Source: Krone
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