US: Yellen extends default deadline to June 5
US Treasury Secretary Janet Yellen on Friday updated the country’s debt default deadline to June 5, later than previously estimated.
Yellen had previously said that a default could happen as early as June 1.
The extension gives Democratic President Joe Biden and Republican House Speaker Kevin McCarthy more time to negotiate to raise the federal government’s self-imposed debt ceiling and avoid a potentially disastrous default.
However, Yellen said the extended deadline doesn’t make the situation any less urgent.
“Waiting until the last minute to suspend or raise the debt limit could seriously damage business and consumer confidence, increase short-term borrowing costs for taxpayers, and negatively impact America’s credit rating,” he said. her in a letter to McCarthy.
“If Congress does not raise the debt limit, it would cause severe hardship for American families, undermine our global leadership position and raise questions about our ability to defend our national security interests.”
More to follow…
zc/wd (AFP, AP, Reuters)
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.