The US Treasury has warned that there is no “Plan B” if no deal is reached on the debt ceiling

File photo of Adewale “Wally” Adeimo, the US Treasury’s “number two man” (Reuters)

Undersecretary of the US Treasury, Wali AdeyoOn Friday, he indicated that there is no “Plan B” if an agreement is not reached between the White House and Republicans to raise the country’s debt ceiling.

In an interview with the network CNNAdeyemo confirmed it The Treasury does not have a Plan B that would allow the United States to “continue to honor” its obligations to “debtors, veterans (…) and the American people.”

Treasury briefcase Number Two has ruled out the possibility of President Joe Biden calling the Fourteenth Amendment to the Constitution To open the deadlock in the talks and this will make it possible to raise the debt ceiling without going through Congress.

“Invoking Amendment 14 to raise the debt ceiling as a means of avoiding negotiations is not an option,” Adeyou concluded.

Speaking to the press during his trip to Japan last week, Biden was not reluctant to use the power granted by the amendment to the Constitution to raise the debt ceiling, as members within his own party have asked him to do. .

File photo of the President of the United States, Joe Biden, next to the Speaker of the House, Kevin McCarthy (REUTERS/Lea Mellis)

The Fourteenth Amendment provides that the validity of the public debt of the United States, authorized by law, shall not be questioned, and The president can count on it arguing that he has a constitutional duty to avoid nonpayment.

For now, there is still no official announcement of any progress in the talks that would shed light at the end of the tunnel in negotiations between the White House and Republican lawmakers.

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Thursday evening, various US media, including the daily New York timesthat sources close to the talks confirmed that an agreement could be announced “soon”.

The potential agreement would raise the debt ceiling for two years and It would impose caps on discretionary government spendingThe newspaper advanced, except for military or veterans affairs New York times.

While the talks continue, lawmakers will go on a short Memorial Day recess through Tuesday. However, they will be notified if they have to appear on Capitol Hill to vote if an agreement is announced. CNN.

The US Capitol entered a short recess until Tuesday, while negotiations over the debt ceiling continue (Reuters/Jonathan Ernst)

As he left the Capitol building on Thursday evening, the Republican congressman Kevin McCartyHe said that negotiations with the Biden government are “not easy.”

For her part, the White House spokeswoman said, Karen Jean-PierreYesterday he repeated his message that suspending payments “is not on the table”.

Unlike most countries, the United States can only borrow up to a limit set by Congress—the debt ceiling—which requires legislative agreement every time a country needs to raise it to pay off its debt.

The current debt ceiling of $31.4 trillion was reached in January, and the country could find itself in default as soon as June 1 if Democrats and Republicans do not reach an agreement to raise it sooner.

(with information from EFE)

Read on:

Debt ceiling negotiations in the US are progressing and Wall Street is trading higher
In the midst of negotiations and on the brink of default, the United States Congress declared a 10-day recess
Three smart ways to protect money if the US defaults
Joe Biden has ruled out debt default and emphasized that talks with Republicans are fruitful
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Sacha Woodward

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