The US predicted a possible default by autumn

Photo: © Global Look Press/CHROMORANGE / Bilderbox

Photo: © Global Look Press/CHROMORANGE / Bilderbox

In June-September 2023, a default may occur in the United States if public debt limits are not raised. This is stated in the report of the Congressional Budget Office.

“If the public debt limit is not changed, then the government’s ability to attract borrowing using extraordinary measures will be exhausted between July and September 2023”– written in the document of the department.

Congressional economists note that if the maximum debt is not raised, the US government will be unable to fully pay its obligations. Then the authorities will have only two options – to defer payments for certain types of activities or to declare a default.

To avoid such a situation, Congress was urged to promptly raise the national debt limit.

At the same time, they cannot agree on this issue in the Congress itself, since the Republican majority demands, instead of increasing the amount of debt, to reduce budget spending. And Speaker of the House of Representatives Kevin McCarthy said that public debt is the main threat to America.

Source: Ren

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