Politics intensifies on increasing Debt limit in US, Janet Yellen said - Decision has to be taken soon, otherwise there will be loss
US Debt limit: Treasury Secretary Janet Yellen has written a letter to Congress and the House in the midst of the ongoing politics to increase the debt limit in America, in which she has asked to increase it.
On behalf of US Treasury Secretary Janet Yellen told the US Congress that if the debt limit is not increased soon, then on June 1, the total debt of America is expected to reach near this limit.
In a letter written by Yellen to the House and Senate, it has been said that a decision should be taken as soon as possible to maintain confidence in America's credit. Let me tell you, at present the credit limit of America is 31.4 trillion, which is being discussed to increase.
The letter further said on behalf of Yellen that we have seen in the past that approaching the debt limit and increasing it at the last moment leads to a decline in customer confidence and it also hurts business. At the same time, it increases the short-term cost to taxpayers and has a negative impact on the US credit rating.
The US has set a target of borrowing $726 billion in this quarter. This is $449 billion higher than the estimate presented in January. The reason behind the increase in borrowing is the low tax collection and high spending in the US.
In the US, both political parties, Democrats and Republicans, both want to increase the debt limit, but opposition Republicans want to increase the debt limit and reduce expenses, while the Biden administration wants to increase it unconditionally.
