May 22, 2023 5:56pm EDT
In new letter, Janet Yellen warns Speaker McCarthy US will breach debt limit June 1
Yellen warned that waiting until the last minute to get debt increase passed would have consequences
By Jay Caruso FOXBusiness
In a new letter written to House Speaker Kevin McCarthy, Treasury Secretary Janet Yellen warned that if Congress and the president do not reach a debt limit increase, the U.S. government will run out of money to pay debts by June 1.
President Biden has negotiated with McCarthy for the last several weeks, and while both have sounded hopeful the two sides could reach a deal, they remain at an impasse.
The House passed a debt limit increase in April that also includes a package of spending cuts for which Biden, Democratic House Minority Leader Hakeem Jeffries and Democratic Senate Majority Leader Chuck Schumer have all rejected. However, the Senate has yet to pass any companion bill and the clock continues to tick away.
Biden and McCarthy met again today at the White House at 5:30 p.m. to continue negotiations. Early on Monday, McCarthy told Fox Digital he would cancel the House of Representative's planned recess next week if a deal isn't reached.
"Oh, yeah. We're gonna stay and do our job," McCarthy said. You know, the difference here is, when Republicans took over, we no longer have this proxy voting. I believe it's more productive." He added, "If the voters vote for you, and lend the voice to you, you should be here to provide that voice. Whether you're with me or against me, I think the voices need to be here. That's what the American people want."
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https://www.foxbusiness.com/economy/new-letter-janet-yellen-warns-speaker-mccarthy-us-breach-debt-limit-june-1
