Without an increase in the US external debt ceiling, funds for servicing it may run out between July and September of this year, leading to a default. This is stated in the report of the US Congressional Budget Office, published on Wednesday, February 15.
“The Congressional Budget Office projects that if the debt limit remains unchanged, the government’s ability to borrow using emergency measures will be exhausted between July and September 2023, which is the fourth quarter of the current fiscal year,” the statement said.
In December 2021, US lawmakers raised the external debt ceiling to $31.4 trillion, and now this limit has been reached.
Congress warned that the US authorities will not be able to repay their obligations and will be forced to default if a decision is not made to raise the debt limit or suspended until the emergency measures are exhausted.
Earlier, on February 6, the head of the US Treasury, Janet Yellen, said that the United States could face economic and financial disaster if the decision to raise the national debt ceiling is not made.
On February 2, it became known that US President Joe Biden refused to negotiate an increase in the national debt, insisting that Congress should make a decision without any conditions.
Earlier in the day, Speaker of the US House of Representatives Kevin McCarthy said he would not allow the public debt to rise without spending reform. He pointed out that the increase in public debt should be accompanied by a “change in behavior” in relation to budget spending.
On January 28, Janet Yellen warned that the risk of default in the US is becoming more and more real. According to her, in the event of a default, the country will face a catastrophe, because after the US default, a spiraling recession and financial crisis could overtake.
On Jan. 19, Yellen announced that the US Treasury Department had launched emergency measures to avoid a debt ceiling default. So, on the same day it became known that the total US public debt approached $31.5 trillion.
