Donald Trump to be welcomed by new debt limit? Treasury Secretary Janet Yellen drops new bombshell
US Treasury Department has sounded a new alarm bell in the form of a new debt limit that could come into picture on January 14 next year, according to Secretary Janet Yellen. This would mean that as soon as Donald Trump comes to power at the White House after taking over the reigns from Joe Biden, his administration would witness the United States could come up against its debt ceiling, according to The Jakarta Post's latest report.
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Are there any risks associated with the debt limit of the US Treasury?
For now, the debt ceiling has been suspended by the Congress, with its deadline being January 1. This means that on Jan. 2 next year, a new limit will be set matching the amount of debt, that will be stamped in by the US Treasury.
However, if the US were to hit this new limit, things ahead could be quite complicated, based on the political scenarios across the times. The government risks defaulting on payment obligations, if the debt limit is not raised, and would mean all sorts of problems for the US economy, including inflation and recession fears.
Is he US economy in danger due to the debt ceiling?
The Congress, over the years, has raised the debt limit more than a 100 times for the government to meet its spending requirements. But Republicans and other faction of conservatives are typically against this massive spending and
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