US Secretary of Treasury warns of possible bankruptcy due to debt crisis.
In a letter to congressional leaders, US Treasury Secretary Janet Yellen warned that if no action is taken to increase the government’s borrowing ceiling, the federal government will go bankrupt after December 15 due to the debt crisis.
“I have great confidence in the ability of the Treasury to be able to continue paying off US debt until the middle of next year, about two weeks longer than the initial forecast of December 3,” he wrote in the letter.
Meanwhile, US President Joe Biden recently signed a $ 1 trillion bill to develop infrastructure projects.
“There are several scenarios in which the US Treasury will run out of funding after December 15,” Yellen said.
He called on members of Congress to take urgent action as soon as possible to increase the federal government’s debt ceiling.
Biden signed a bill in October to increase the US debt ceiling by $ 480 billion, after the country went bankrupt on October 18.
