Sunday, December 10, 2023

The US Treasury warns that there is no “plan b” if there is no agreement on the debt

The Undersecretary of the Department of United States TreasuryWally Adeyemo, pointed out this Friday that there is no “plan B” if an agreement is not reached between the White House and the Republicans to raise the debt ceiling from the country.

In an interview with CNN, Adeyemo assured that the Treasury does not have an alternative plan that allows the US. “continue to comply” with its commitments to “debtors, veterans (…) and the American people.”

He “number two” The Treasury portfolio ruled out the possibility of President Joe Biden invoking Amendment 14 to the Constitution to unblock the deadlock in talks, which would allow the debt ceiling to be raised without going through Congress.

“Invoke the amendment 14 to raise the debt ceiling as a way to avoid negotiations is not an option”, Adeyemo settled.

Speaking to the press during his trip to Japan last week, Biden was not averse to using the authority that said amendment of the Constitution gives him to raise the debt ceiling and members within his own party have also asked him to do so.

Amendment 14 establishes that the validity of the public debt of the United States, authorized by law, will not be questioned, and the president could rely on it arguing that he has a constitutional duty to avoid non-payment.

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

On Thursday night, various US media outlets, including The New York Times, reported that sources close to the talks claimed that a agreement could be announced “soon”.

The possible agreement would raise the debt ceiling for two years and would impose maximum discretionary government spending, except for military or veterans’ affairs, The New York Times reported.


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