The ongoing stalemate in Washington regarding the debt ceiling has put the US economy at risk. The Treasury Secretary, Janet Yellen, has warned that there are no good options for solving the situation other than Congress lifting the cap. Yellen cautioned against the idea of resorting to the 14th Amendment, stating that it would provoke a constitutional crisis. While there has been a split among constitutional scholars and economists on the matter, Yellen emphasized that it is Congress's job to lift the ceiling and prevent an economic and financial catastrophe.
The federal government has been using special accounting measures since January to make cash available. However, those measures could run out as soon as June 1, according to Yellen. President Joe Biden is scheduled to meet with congressional leaders to discuss the issue, but both sides seem to be at an impasse. Congressional Republicans are demanding promises of future spending cuts before they approve a higher ceiling, while Biden has insisted on a "clean" increase with budget talks kept separate.
Yellen has dismissed the idea of invoking the 14th Amendment and repeatedly emphasized the importance of Congress lifting the ceiling. The Republican-led House has already passed legislation calling for an increase in the debt ceiling by $1.5 trillion in exchange for $4.8 trillion in budget cuts. Meanwhile, Senate Democrats have put forward a bill calling for an unconditional debt cap increase. Yellen has called on Congress to prevent economic calamity for American households and the global financial system by agreeing on budget priorities and lifting the debt ceiling.
The ongoing debt ceiling stalemate highlights the importance of Congress's responsibility to ensure the financial stability of the US economy. It is crucial that lawmakers put aside their political differences and work together to prevent a financial catastrophe. As Yellen has emphasized, there are no good options for solving the situation other than Congress lifting the cap, and failure to do so could have disastrous consequences for the US and global economies.
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