US Treasury Secretary Janet Yellen
©Global Look Press/Keystone Press Agency
The US authorities are faced with a drop in investor interest in government bonds against the backdrop of a conflict between the administration of President Joe Biden and the Republicans who control the US House of Representatives due to an increase in the country’s public debt. This was stated on May 16 by the head of the Ministry of Finance of the country, Janet Yellen, speaking to the community of independent bankers of America (ICBA).
“We are already seeing the impact of the confrontation: investors have become less willing to hold government debt due in early June,” quotes Yellen Agency Prime.
According to her, this situation has resulted in an increase in the debt burden on taxpayers. In addition, many companies spend time planning their actions due to the potential risk of a US default and do not think about long-term investments, the minister said.
Yellen urged the US Congress to raise the national debt ceiling and added that next week she will report to lawmakers on the state of the US economy. Back in January 2023, the head of the Ministry of Finance spoke about the need for “extraordinary measures” in connection with the achievement of the public debt ceiling of $31.381 trillion. According to Yellen, without a decision on the public debt, the authorities will not be able to fulfill their obligations by June 1.
On the eve of Biden announced the upcoming on Tuesday debt negotiations with the Speaker of the House of Representatives. The US President believes that they have not yet reached the “critical point”.
