As a journalist, I am reporting on the breaking news that Janet Yellen, the US Treasury Secretary, has warned of a potential ‘constitutional crisis’ if the US government fails to raise the debt ceiling.
Yellen made the statement in a letter addressed to House Speaker Nancy Pelosi and other congressional leaders on May 4th. She wrote that the US government will exhaust its borrowing authority and run out of cash by the end of the summer if the debt ceiling is not raised.
In her letter, Yellen urged Congress to take action to avoid what she called “a catastrophic event for our economy.” She warned that failing to raise the debt ceiling could lead to a default on US government debt, which would have serious consequences for the US and global economy.
The debt ceiling is a limit on the amount of debt that the US government can incur. It was last raised in 2019 to $22 trillion, and the current limit is $28.4 trillion. The US government reached the debt ceiling in July 2021, and the Treasury has been using extraordinary measures to continue borrowing money.
The impasse over the debt ceiling has become a political battleground, with Democrats and Republicans unable to agree on a path forward. Republicans have opposed raising the debt ceiling, citing concerns over the size of government spending. Democrats, on the other hand, have argued that raising the debt ceiling is necessary to avoid a catastrophic economic crisis.
In conclusion, Yellen’s warning of a potential ‘constitutional crisis’ over the US debt ceiling impasse highlights the urgent need for Congress to act to avoid a catastrophic economic event. As a journalist, it is my duty to continue to monitor this story and report on any developments.
