Washington, 14 January 2023 (GNP): The US Treasury Secretary Janet Yellen informed the Congress about rising debt of the country and asked for stringent measures to control this rise.
In her written detail to the House and senior leaders, Treasury Secretary asked them either to raise the limit of the debit or pass legislations to suspend the rising debt again for a defined period.
Some of these steps include delaying payments to the federal employee’s retirement plan, which would provide leeway to the federal government for paying other existential payments like social security and debt instrument.
She warned that if immediate and proper measures are not taken in this regard, it would prove disastrous not to the US economy but to the whole world’s financial system as well.
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In 2011 Standard and Poor, a credit rating agency downgraded the American triple-A status giving a smack on the head to the country about its economic status and strength.
She acknowledged that the Treasury Department cannot forecast how long and effective would be these measures in fulfilling the governmental obligations of the United States, but the cash and safety measures may help it till the month of coming June.
The rising debt may cause heated political arguments between Republicans controlling the House after last November’s midterm elections and President Biden and his Democrats now weaker in the House. The forecasts about the country’s economy and economic status bode ill for its growth rate and inflation rate. Some reasons that are given for this economic meltdown are the COVID-19 pandemic, the Russian invasion of Ukraine, and political and economic haggling with Beijing.