Treasury Secretary Janet Yellen says there are “no good options” for the U.S. to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit in the coming weeks.
of $31.381 trillion in the coming weeks. She did not rule out President Joe Biden bypassing lawmakers and acting on his own to try to avert a first-ever federal default.
Yellen, interviewed on ABC’s “This Week,” painted a dire picture of what might happen if the borrowing limit is not increased before the Treasury Department runs out of what it calls “extraordinary measures” to operate under the current cap. That time, she said, is expected to come in early June, perhaps as soon as June 1.
House Republicans on April 26 passed a bill that would raise the debt limit but impose significant federal spending cuts. But those cuts are unlikely to win the support of all Republicans in the Democratic-controlled Senate, and Biden has said he will only negotiate about government spending once Congress takes the risk of default off the table.
Yellen was asked on ABC whether Biden could bypass Congress by citing the Constitution’s 14th Amendment that the “validity” of U.S. debt “shall not be questioned.” Yellen did not answer definitively, but said it should not be considered a valid solution. Sen. James Lankford, R-Okla., agreed about the risks of invoking the 14th Amendment, He told ABC that the Constitution is “very clear that spending -- all those details around spending and money actually has to come through Congress.”
Biden, in an interview with MSNBC on Friday, was asked about the 14th Amendment proposal, saying, “I’ve not gotten there yet.”
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