{"id":225362,"date":"2023-05-08T15:38:43","date_gmt":"2023-05-08T13:38:43","guid":{"rendered":"https:\/\/www.discoverwalks.com\/blog\/?post_type=news&#038;p=225362"},"modified":"2023-05-08T15:38:43","modified_gmt":"2023-05-08T13:38:43","slug":"president-bidens-administration-facing-probable-financial-and-economic-chaos","status":"publish","type":"news","link":"https:\/\/www.discoverwalks.com\/blog\/news\/president-bidens-administration-facing-probable-financial-and-economic-chaos\/","title":{"rendered":"President Biden\u2019s Administration Facing Probable Financial And Economic Chaos"},"content":{"rendered":"<h2>US Treasury Secretary Predicts Financial \u2018Chaos\u2019 If Congress Does Not Intervene<\/h2>\n<p>Treasury Secretary Janet Yellen on Sunday 7th May 2023, Treasury Secretary Janet Yellen warned that the treasury department could run out of measures to pay its debt obligations by June. Secretary Yellen said that failure by Congress to raise the debt ceiling will cause what she called a \u201csteep economic downturn\u201d in the United States.<\/p>\n<p>Talking to ABC\u2019s \u2018This Week\u2019, Yellen said, \u201cOur current projection is that in early June, a day will come when we\u2019re unable to pay our bills unless Congress raises the debt ceiling, and it\u2019s something I strongly urge Congress to do.\u201d<\/p>\n<p>Yellen proceeded to advise that Congress should take action to avoid a probable \u201ceconomic calamity.\u201d According to her, the situation is at a critical point because the United States has currently been using \u201cextraordinary measures\u201d to avoid defaulting on the loans.<\/p>\n<p>She insisted that this is not something that the Treasury Department can afford to continue doing. In her words, \u201cIt\u2019s widely agreed that financial and economic chaos will ensue,\u201d if the situation persists as it is.<\/p>\n<p>In a letter to House Speaker Kevin McCarthy, Yellen said that the data received by the Treasury Department forced them to reevaluate and move up the estimated dates when the department would be \u201cunable to continue to satisfy all of the government\u2019s obligations.\u201d<\/p>\n<p>The new date as per the new estimates shows possible defaulting could occur as soon as June 1st. As CNBC reveals, this date is earlier than Wall Street economists had forecasted.<\/p>\n<h2>What Is The Biden Administration Doing To Remedy The Situation?<\/h2>\n<p>Lawmakers have been making active arrangements to find a path forward to raise the debt ceiling as per Yellen\u2019s suggestion or suspend it. Suspending the debt ceiling means removing the limit set on the amount of debt the federal government is authorized to accrue.<\/p>\n<p>However, there is currently an impasse on the issue as members of Congress are divided with Republicans opposed to raising or suspending the debt ceiling.<\/p>\n<p>On Monday, 8th May, President Joe Biden sent out an invite to the \u201cbig four\u201d congressional leaders for a meeting at the White House to discuss a way forward for the debt limit. The \u201cbig four\u201d includes, Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, McCarthy, and House Democratic Leader Hakeem Jeffries.<\/p>\n<p>Speaking to NBC, Hakeem Jeffries (New York), said that the meeting will facilitate the administration to find a way forward. He said, \u201cWe have to avoid default, period.\u201d<\/p>\n<p>However, Senator James Lankford (Oklahoma) is one of the many who are critical of how the Biden administration has chosen to go about the issue. According to him, the meeting should have been held sooner.<\/p>\n<p>\u201cEveryone knew this was coming and the president refused to be able to negotiate about it,\u201d he told ABC.<\/p>\n<p>The current US debt, which President Biden and his administration are currently pushing to be raised currently stands at $31.4 trillion (\u00a325.12 trillion). Since 1960, there have been 78 increases, extensions, or revisions to the debt ceiling, frequently after tense talks which have for the most times gone to the wire.<\/p>\n<p>As much as any apparent raising or suspension has been done at the last minute, the US government has never defaulted on its loans. If this were to be the first time, this development would as the BBC put it, \u201cupend global financial markets and have far-reaching economic impacts.\u201d<\/p>\n<p>However, waiting and making any possible changes also has negative effects which Ellen reminded everyone in the letter.<\/p>\n<p>In the letter she wrote, &#8220;We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.&#8221;<\/p>\n<div id=\"disco-268550173\" class=\"disco-amazon-box-2024 disco-entity-placement\"><div style=\"width: 100%; border: 2px solid lightgray; padding: 3% 6% 3% 3%; border-radius: 5px;\">\n<p style=\"text-align: center;\">Planning a trip to Â鶹APP ? Get ready !<\/p>\n<hr style=\"border: 1px solid #c4336e; width: 100%; margin: 5px auto 25px auto;\" \/>\n<p>These are\u00a0<strong>Amazon&#8217;s\u00a0best-selling<\/strong>\u00a0travel products that you may need for coming to Â鶹APP.<\/p>\n<p><span style=\"color: #808080;\"><strong>Bookstore<\/strong><\/span><\/p>\n<ol>\n<li><strong>The best travel book : Rick Steves &#8211; Â鶹APP 2023<\/strong> <strong>&#8211;\u00a0<a class=\"ricksteves1\" href=\"https:\/\/amzn.to\/3rEUV7n\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Learn more here<\/a><\/strong><\/li>\n<li><strong>Fodor&#8217;s Â鶹APP 2024 &#8211;\u00a0<a class=\"lonelyplanet1\" href=\"https:\/\/amzn.to\/3RVYQqV\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Learn more here<\/a><\/strong><\/li>\n<\/ol>\n<p><span style=\"color: #808080;\"><strong>Travel Gear<\/strong><\/span><\/p>\n<ol>\n<li><strong>Venture Pal Lightweight Backpack &#8211;\u00a0<a class=\"venturebackpack1\" href=\"https:\/\/amzn.to\/3Fg15xU\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Learn more here<\/a><\/strong><\/li>\n<li><strong>Samsonite Winfield 2 28&#8243; Luggage &#8211;\u00a0<a class=\"samsnonite1\" href=\"https:\/\/amzn.to\/3PTNRM1\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Learn more here<\/a><\/strong><\/li>\n<li><strong>Swig Savvy&#8217;s Stainless Steel Insulated Water Bottle\u00a0&#8211;\u00a0<a class=\"waterbottle1\" href=\"https:\/\/amzn.to\/46GvhhP\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Learn more here<\/a><\/strong><\/li>\n<\/ol>\n<p><strong><a class=\"ourtravellist1\" title=\"This external link will open in a new window\" href=\"https:\/\/amzn.to\/2uIsJ55\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Check Amazon\u2019s best-seller list for the most popular travel accessories. <\/a>We sometimes read this list just to find out what new travel products people are buying.<\/strong><\/p>\n<\/div>\n<\/div>","protected":false},"author":1717,"featured_media":225364,"template":"","categories":[4068],"subject":[4429],"class_list":["post-225362","news","type-news","status-publish","has-post-thumbnail","hentry","category-business-and-technology","subject-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>President Biden\u2019s Administration Facing Probable Financial And Economic Chaos - Discover Walks Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.discoverwalks.com\/blog\/news\/president-bidens-administration-facing-probable-financial-and-economic-chaos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"President Biden\u2019s Administration Facing Probable Financial And Economic Chaos - Discover Walks Blog\" \/>\n<meta property=\"og:description\" content=\"US Treasury Secretary Predicts Financial \u2018Chaos\u2019 If Congress Does Not Intervene Treasury Secretary Janet Yellen on Sunday 7th May 2023, Treasury Secretary Janet Yellen warned that the treasury department could run out of measures to pay its debt obligations by June. 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