The United States Treasury Secretary, Janet Yellen once again warned about the issue of the debt ceiling (debt ceiling) which has yet to reach an agreement.
Ahead of the June 1 deadline, Yellen warned that failure to raise the debt ceiling would lead to a deep recession in the US.
This is because the federal government will run out of money to fund services such as social security, health and the military.
As a result, Janet Yellen urged Congress to do its job, because if it fails the US will suffer economic and financial catastrophe.
In this context, Congress is responsible for setting the debt limit, but due to the conflict between Republicans and Democrats, it faces difficulties.
Republicans set conditions for cutting government spending in support of raising the debt ceiling, but Democrats disagreed because it would hurt the interests of President Joe Biden's party.
This failure has created a risk for America to face 'default', which is feared to affect the economy as a whole.
On Tuesday, President Biden will meet with Republican leaders to ask them to agree to raise the current cap of $31.4 trillion.
If Congress fails to act before June, Biden has another option to avert a crisis by using the 14th Amendment to the US Constitution to ensure the US can continue to pay its bills.
However, the President has so far said he is not yet ready to use it.
