[Asia Economy Reporter Kim Suhwan] Amid the recent passage of a bill in Congress to temporarily raise the U.S. federal government debt ceiling, Treasury Secretary Janet Yellen warned that all emergency measures are expected to be exhausted by December 3, raising the possibility of a government default thereafter.
On the 18th (local time), Secretary Yellen sent a letter to Congress stating, "The recent decision by Congress to suspend the debt ceiling until December is a short-term solution," and added, "We plan to use emergency measures to fund the federal government budget until December 3."
Secretary Yellen emphasized, "Congress must urgently extend the debt ceiling suspension or raise the limit," adding, "This is the way to provide long-term certainty so that the government can fulfill its obligations."
She further stated, "We will continue to suspend additional investments in the pension funds for seniors, government employees, and retired military personnel."
Earlier, the debt ceiling was reinstated after the suspension period ended in August this year, and the Treasury Department warned on October 18 that all cash would be depleted. In response, Congress passed a law to temporarily extend the debt ceiling six days before October 18.
However, the debt ceiling extension bill was passed under Democratic leadership, and although the Republicans agreed to end the filibuster (unlimited debate), they voted against the debt ceiling extension bill.
The Republican side stated that the majority party in Congress and the current ruling party, the Democrats, bear the responsibility to resolve the debt ceiling issue, and they have no plans to engage in negotiations related to the debt ceiling when the suspension period ends in December.
Senate Minority Leader Mitch McConnell of the Republican Party sent a letter to President Joe Biden last week, stating, "Our party will not participate in mitigating the consequences of the Democrats' mistakes," and added, "Your staff (Democratic lawmakers) will have time in Congress to resolve the debt ceiling issue."
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