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U.S. Treasury Secretary Janet Yellen in January 2023
Photo: Kim Ludbrook / EPA
In view of the faltering negotiations on raising the debt ceiling, US Treasury Secretary Janet Yellen is increasing the pressure on the Republicans. The deadline by which a solution must be found to prevent a U.S. default will not be extended, Yellen told NBC on Sunday. June 1 is a "hard deadline". The chances that the government will be able to bridge the period until June 15 due to current tax revenues are slim.
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Imminent upheavals on the financial markets: The default of the USA has been averted – or not? By Tim Bartz, Michael Brächer, Simon Hage and Roland Nelles
There is a dispute in Washington about raising the federal debt ceiling from the current $31.4 trillion. Without an agreement, the U.S. is threatened with insolvency as early as next month, according to the Treasury Department. In the U.S., there are always disputes over the debt ceiling. Often, a last-minute agreement was reached. But this time, the extremely hardened fronts between the parties and the very short time left for a compromise make the stock markets nervous.
US President Joe Biden had arranged to meet on Sunday from the G7 summit for a phone call with Republican negotiator Kevin McCarthy. However, the results of this conversation are not yet known.
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