Monitoring Desk
WASHINGTON: The United States hit the debt ceiling on Thursday, compelling the US Treasury Department to take some unusual steps to keep the administration paying its expenses bill and increasing pressure on Capitol Hill to avoid a disastrous default.
CNN reported that theclash lines for the high-stakes battle have already been set as hardline Republicans have demanded that lifting the borrowing cap be linked to expenditures decrease. The White House refuted that it will not give any concessions on raising the debt ceiling.
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US Hits Debt Ceiling
Treasury Department Secretary Janet Yellen also wrote a letter to US House of Representative Speaker Kevin McCarthy Thursday, informing him that the US’s outstanding debt is at its constitutional limit of $31.4 trillion and that the agency will impose extraordinary steps so it doesn’t default on its debt, which would have huge consequences on the country’s economy, world financial stability, and many American nationals. She said the new steps would last through June 5.
The Secretary urged Congress to act promptly to protect the full faith and credit of the US.
