(TruthandLiberty.com) – Senate Minority Leader Mitch McConnell (R-Ky.) Thursday, said that he believed the U.S. would never default on its debts and that there is no chance that a financial crisis is coming up.
McConnell, who was replying to reporters in his home state, argued that raising the debt ceiling has always required a lot of effort. He added that he believed lawmakers would still manage to do so before all of the Treasury’s “extraordinary measures” are no longer available.
Following an event at the University of Louisville, McConnell said that he is not currently concerned about the possibility of a financial crisis. He added though that it is also crucial to keep in mind that the U.S. should under no circumstances default on its debt. This means that they most likely will need to negotiate with the Biden administration to determine what the options and conditions for raising the debt ceiling should be.
Earlier that day, Treasury Secretary Janet Yellen had written in a letter sent to congressional leaders, that the Treasury would need to employ “ extraordinary measures” in order to ensure that they will not be defaulting on the country’s debt payments. wrote in a letter to congressional leaders that the department would now resort to “extraordinary measures” to ensure the U.S. does not default on its debt payments.
Yellen also added that it would be possible to suspend having to default on their debt payment until around June 5.
McConnell is also set to play a really big part in the negotiations between the White House and the House Republicans, who are now in control of the lower Senate. While both the White House and the Democrats have wanted to pass a simple debt ceiling increase law, Speaker Kevin McCarthy (R-Calif.) has said that any debt ceiling will need to include spending cuts within the bill.
Copyright 2023, TruthandLiberty.com