Concerns have been raised regarding the United States’ financial stability, prompting the US Treasury Secretary, Janet Bellin, to express apprehension over a potential default in the near future. Foreign media outlets have reported that Secretary Bellin has penned a letter to the congressional leaders, emphasizing that unless an agreement is reached between the White House and Congress regarding the augmentation of the national debt limit, the United States runs the risk of defaulting on its debt prior to June 1.
The U.S. Treasury Secretary has previously issued numerous warnings regarding the repercussions of a failure by Congress to raise the federal borrowing limit. She has highlighted that such an event would have dire consequences for the American economy and could lead to a significant economic and financial crisis not only for the United States but also for global economies that heavily rely on the stability of the US dollar.
In addition to the Treasury Secretary’s concerns, President Joe Biden has also issued cautionary statements, stressing the disastrous outcomes that would ensue if the United States were to default on its financial obligations. The potential consequences would have far-reaching implications for the nation’s economy, exacerbating an already precarious situation
