America&#8217;s gross national debt surpassed $33 trillion for the first time in U.S. history on Monday as Washington, D.C., faces a potential government shutdown over federal spending.
Data reportedly published by the Treasury Department showed the national debt — which measures how much the federal government owes security holders — hit $33.04 trillion, just months after it eclipsed $32 trillion in mid-June.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a <a href="https://www.crfb.org/press-releases/national-debt-reaches-33-trillion-adds-1-trillion-debt-3-months" target="_blank" rel="noopener">news release</a> that the latest numbers reached &#8220;a new milestone that no one will be proud of.&#8221;
&#8220;Debt held by the public, meanwhile, recently surpassed $26 trillion,&#8221; MacGuineas said. &#8220;We are becoming numb to these huge numbers, but it doesn&#8217;t make them any less dangerous.&#8221;
The Congressional Budget Office confirmed last week that the underlying deficit would likely double from last fiscal year to this one, according to MacGuineas. The office reportedly <a href="https://fortune.com/2023/09/18/janet-yellen-national-debt/" target="_blank" rel="noopener">warned</a> in June that high interest rates and rising national debt could make net interest payments spike to 6.7% of GDP by 2053, according to Fortune.
&#8220;Instead of hearing about solutions, we hear promises of which programs our leaders are unwilling to touch and which taxes they are unwilling to raise,&#8221; she said. &#8220;That kind of talk is not only pandering, but it&#8217;s also downright irresponsible when we have a mess like this on our hands.&#8221;
The announcement comes as House Republicans proposed a short-term plan on Sunday that would temporarily fund the government through October 31 to avoid a shutdown and impose an 8% spending cut on federal agencies, excluding defense funding, veterans affairs, and disaster relief, <a href="https://www.foxbusiness.com/economy/us-national-debt-hits-33t-first-time-history" target="_blank" rel="noopener">according</a> to Fox Business.
But the measure received opposition from fellow GOP lawmakers while Democrats are unlikely to support it.
Michael A. Peterson, the chief executive of the budget watchdog group Peter G. Peterson Foundation, raised the alarm of a looming federal crisis.
&#8220;As we have seen with recent growth in inflation and interest rates, the cost of debt can mount suddenly and rapidly,&#8221; Peterson said, <a href="https://www.nytimes.com/2023/09/18/us/politics/us-national-debt.html" target="_blank" rel="noopener">according</a> to The New York Times. &#8220;With more than $10 trillion of interest costs over the next decade, this compounding fiscal cycle will only continue to do damage to our kids and grandkids.&#8221;
Mark Spitznagel, founder of the hedge fund Universa Investments, told Fortune in August that we&#8217;re living through the &#8220;greatest credit bubble in human history&#8221; after warning of a potential impact from the debt increase.
&#8220;We&#8217;ve never seen anything like this level of total debt and leverage in the system,&#8221; Spitznagel said. &#8220;It&#8217;s an experiment. But we know that credit bubbles have to pop. We don&#8217;t know when, but we know they have to.&#8221;
U.S. Treasury Secretary Janet Yellen <a href="https://www.cnbc.com/2023/09/18/first-on-cnbc-cnbc-transcript-united-states-treasury-secretary-janet-yellen-speaks-with-cnbcs-sara-eisen-on-squawk-on-the-street-today.html" target="_blank" rel="noopener">told</a> CNBC on Monday that she isn&#8217;t worried about the staggering debt, claiming that the net interest as a share of GDP remains under control by the federal government.
&#8220;And even with the rise we have seen in interest rates, that remains at a very reasonable level,&#8221; Yellen said, admitting that U.S. officials need to be careful about spending going forward in order to stay on this &#8220;sustainable course.&#8221;
&#8220;Certainly, greater deficit reduction is possible,&#8221; she added. &#8220;The President has proposed a series of measures that would reduce our deficits over time while investing in the economy, and this is something we need to do going forward.&#8221;
President Joe Biden <a href="https://www.dailywire.com/news/biden-signs-bill-to-increase-debt-ceiling-avoid-federal-default" target="_blank" rel="noopener">signed</a> the Fiscal Responsibility Act in June that will suspend the debt limit until January 2025 and implement restraints on spending that the Congressional Budget Office estimated would reduce budget deficits by $1.5 trillion over the next decade.

US-POLITICS-ECONOMY-DEBT

US National Debt Surpasses $33T For First Time In History

Biden Administration

Janet Yellen

National Debt

Treasury Department

Washington D.C.

Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen">Janet Yellen</a> served up some laughs — as well some concerns — in talking about her experience dining on a dish with hallucinogenic mushrooms in <a href="https://www.dailywire.com/topic/china">China</a>.
In an <a href="https://www.cnn.com/2023/08/15/business/janet-yellen-magic-mushrooms-china/index.html">interview on Monday</a>, CNN&#8217;s Erin Burnett pressed Yellen to talk about her experience eating &#8220;magic mushrooms&#8221; with a group of people at a Beijing restaurant earlier this summer.
&#8220;The person who had arranged our dinner did the order and there was a delicious mushroom dish. I was not aware that these mushrooms had hallucinogenic properties. I learned that later,&#8221; Yellen said.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Treasury Secretary Janet Yellen explains eating a dish that contained “magic mushrooms” on her recent trip to China:
“There was a delicious mushroom dish. I was not aware that these mushrooms had hallucinogenic properties. I learned that later.” <a href="https://t.co/WFRe92hHT8">pic.twitter.com/WFRe92hHT8</a>
&mdash; The Recount (@therecount) <a href="https://twitter.com/therecount/status/1691528097047232512?ref_src=twsrc%5Etfw">August 15, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
An amused Burnett asked Yellen if she had any visions, perhaps when she was sleeping. Through a fit of giggles, Yellen insisted that she did not start tripping.
&#8220;I read that if the mushrooms are cooked properly, which I&#8217;m sure they were at this very good restaurant, that they have no impact,&#8221; the secretary said. &#8220;But all of us enjoyed the mushrooms — the restaurant and none of us felt any ill effects from having eaten them.&#8221;
Some people reacted to the exchange on social media with glee and humor — including NPR correspondent David Gura making a <a href="https://twitter.com/davidgura/status/1691509934683312129">economics joke</a> about how the &#8220;effects were transitory&#8221; — while others expressed uneasiness or ridiculed the Biden administration official.
&#8220;A Biden cabinet member was served hallucinogenic mushrooms in China? Can’t make this stuff up,&#8221; Sen. John Cornyn (R-TX) said in <a href="https://twitter.com/JohnCornyn/status/1691506370564988931">a post to X</a>.
&#8220;Intelligence officers use psychedelics to compromise their targets,&#8221; Eric Garland, a self-described geopolitical analyst with nearly 300,000 followers on X, <a href="https://twitter.com/ericgarland/status/1691517767474634753">said</a> in a post. &#8220;If they targeted Janet Yellen as part of an operation, diplomatic punishments should be swift and harsh.&#8221;
Steve Guest, a conservative commentator, <a href="https://twitter.com/SteveGuest/status/1691441249671118848">observed</a>, &#8220;Joe Biden&#8217;s America: The Treasury Secretary gets booked on CNN to talk about shrooming while in China,&#8221; while the Republican National Committee&#8217;s Jake Schneider <a href="https://twitter.com/jacobkschneider/status/1691446055169064960">quipped</a>, &#8220;This is a very serious administration.&#8221;
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Yellen made the trip to China in early July. She ate at the restaurant — part of a Yunnan food chain called Yi Zuo Yi Wang — shortly after landing in Beijing, according to CNN, which also <a href="https://edition.cnn.com/travel/yunnan-cuisine-beijing-restaurant-mushrooms-yellen-intl-hnk/index.html">reported</a> the restaurant later posted to the Chinese social media platform Weibo to share that staff said Yellen &#8220;loved&#8221; the mushrooms &#8220;very much. She ordered four portions of jian shou qing (a Yunnan wild mushroom species). It was an extremely magical day.&#8221;
During her interview with the secretary, Burnett noted the chain&#8217;s wild mushroom dish has been selling out in locations around China ever since Yellen&#8217;s meal at the restaurant &#8220;set off a frenzy.&#8221;
While in China, Yellen set her focus on discussing issues such as economic competition, national security, and &#8220;climate finance.&#8221; By the end, she insisted the talks <a href="https://www.politico.com/news/2023/07/08/janet-yellen-china-talks-00105311">were &#8220;productive.&#8221;</a>
But Yellen <a href="https://www.dailywire.com/news/treasury-secretary-ripped-for-bowing-to-chinese-official">garnered some criticism</a> with the emergence of video footage showing her bowing repeatedly to a Chinese official during the visit to Beijing.

Yellen Admits To Eating ‘Magic Mushrooms’ In China

Yellen Dishes On Eating 'Magic Mushrooms' In China

China

General

World

One of the &#8220;Big Three&#8221; credit agencies lowered the United States&#8217;s rating by a tick on Tuesday, eliciting swift condemnation from Biden administration officials who said they &#8220;strongly disagree&#8221; with the change.
Fitch Ratings <a href="https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023">downgraded</a> the country&#8217;s Long-Term Foreign-Currency Issuer Default Rating from top-rated &#8220;AAA&#8221; to &#8220;AA+&#8221; in a move that could lead to higher interest rates and borrowing costs. It follows the federal government <a href="https://www.dailywire.com/news/biden-signs-bill-to-increase-debt-ceiling-avoid-federal-default">narrowly avoiding</a> a default on its debt earlier this summer and several weeks ahead of <a href="https://www.dailywire.com/news/gop-congressman-makes-case-for-why-we-should-not-fear-a-government-shutdown">a possible shutdown</a> if a politically-divided Congress fails to come to an agreement on spending for the next fiscal year.
&#8220;The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to &#8216;AA&#8217; and &#8216;AAA&#8217; rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions,&#8221; Fitch said in a <a href="https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023">release</a>.
Fitch indicated the change was a long time coming, noting &#8220;there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025.&#8221;
The credit agency, which had placed the U.S. government&#8217;s &#8220;AAA&#8221; rating on a <a href="https://www.fitchratings.com/research/sovereigns/fitch-places-united-states-aaa-on-rating-watch-negative-24-05-2023">&#8220;negative&#8221; watch this past May</a>, also cited other factors in announcing the change on Tuesday, including projections that show &#8220;tighter credit conditions, weakening business investment, and a slowdown in consumption will push the U.S. economy into a mild recession.&#8221;
Treasury Secretary Janet Yellen and the White House issued separate statements that each said they &#8220;strongly disagree&#8221; with the change. While Yellen <a href="https://home.treasury.gov/news/press-releases/jy1665">called the decision</a> &#8220;arbitrary and based on outdated data,&#8221; White House Press Secretary Karine Jean-Pierre waded into politics.
&#8220;The ratings model used by Fitch declined under President Trump and then improved under President Biden, and it defies reality to downgrade the United States at a moment when President Biden has delivered the strongest recovery of any major economy in the world,&#8221; Jean-Pierre said. &#8220;And it’s clear that extremism by Republican officials — from cheerleading default, to undermining governance and democracy, to seeking to extend deficit-busting tax giveaways for the wealthy and corporations — is a continued threat to our economy.&#8221;
It&#8217;s been more than a decade since the first and last time the U.S. faced such a downgrade. In 2011, S&amp;P bumped the U.S. long-term rating from its &#8220;AAA&#8221; perch to &#8220;AA+&#8221; — where it stands today — citing &#8220;<a href="https://www.washingtonpost.com/wp-srv/politics/documents/spratingreport_080611.pdf?itid=lk_inline_manual_3">political brinkmanship</a>&#8221; and the debt burden just days after then-President Barack Obama <a href="http://www.cnn.com/2011/POLITICS/08/02/debt.talks/index.html">signed legislation</a> to lift the debt ceiling just days before it was estimated the U.S. could have defaulted on its financial obligations.
After Fitch announced its downgrade on Tuesday, following years of rising U.S. government budget numbers and the debt doubling since 2011 <a href="https://www.usdebtclock.org/">to more than $32 trillion</a>, Republicans argued the change was an indicator of too much spending and borrowing.
&#8220;Today’s decision by Fitch Ratings to downgrade U.S. sovereign debt to ‘AA+’ is yet another sign that incessant and irresponsible borrowing to fund bigger government is not without real repercussions,&#8221; Rep. David Schweikert (R-AZ) <a href="https://twitter.com/RepDavid/status/1686519353997467648">said</a> in a post to X. &#8220;I’ve been outspoken in my belief that we need to get America’s fiscal house in order before it’s too late. Fitch’s downgrade should be seen as exactly what it is — a warning that continuing down the path of out-of-control borrowing will and does have serious consequences.&#8221;

Visitors tour the US Capitol in Washington, DC

Fitch Downgrades US Credit Rating; Biden Officials ‘Strongly Disagree’

Fitch Downgrades US Credit Rating; Biden Officials 'Strongly Disagree'

Economy

U.S.

Biden Treasury Secretary Janet Yellen said during an interview over the weekend that the administration will take action to protect national security, even if it &#8220;harms our own narrow economic interests.&#8221;
Yellen made the remarks while in Beijing during an interview with CBS News&#8217;s &#8220;Face The Nation&#8221; with host Margaret Brennan.
Brennan asked Yellen if she had &#8220;a sense of what the retaliation will be from China&#8221; if the administration imposes further &#8220;restrictions on high-end technology sales&#8221; to the nation.
&#8220;Well, an objective of my trip was to explain that national security is something that we can&#8217;t compromise about and we will protect, and we will do so even if it harms our own narrow economic interests,&#8221; she said. &#8220;But that when we take such actions, which do have an effect on the Chinese economy, that we will make sure that they are transparent, narrowly targeted, and well explained.&#8221;
Yellen said she &#8220;certainly expressed concern&#8221; about China&#8217;s <a href="https://www.dailywire.com/news/china-restricts-export-on-2-minerals-that-could-damage-economy">decision</a> to restrict exports of two minerals critical to the U.S. economy and military.
&#8220;Our own actions are narrowly targeted to address national security concerns, and I- it&#8217;s not clear that the actions that the Chinese took are similarly narrowly targeted at their national security concerns,&#8221; she said. &#8220;So this is an area that I expressed concern about.&#8221;
She said she went to China to &#8220;make sure that we don&#8217;t engage in a series of unintended escalatory actions that will be harmful to our overall economic relationship with one another.&#8221;
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&#8220;And we have had very little contact, both senior officials, and also just the American people and the Chinese people who&#8217;ve had very little contact with one another over the last several years, in part because of COVID,&#8221; she said. &#8220;And that&#8217;s a situation where misunderstandings can develop. We have a new team on the economic side in Beijing, that it&#8217;s important to establish person-to-person relationships, and to open ongoing channels of communication, where concerns can be aired and discussed. And I do think my trip has been successful in forging those relationships and creating the opportunity for a deeper set of more frequent contacts at our staff levels.&#8221;
WATCH:
<iframe loading="lazy" title="Full interview: Treasury Secretary Janet Yellen" width="500" height="281" src="https://www.youtube.com/embed/GgvQWCA1p6E?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>

CHINA-US-DIPLOMACY

Biden Treasury Secretary: We’ll Take Action On China Even If It ‘Harms’ Our Economy

Biden Treasury Secretary: We'll Take Action On China Even If It 'Harms' Our Economy

Communist China

Global Politics

Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen">Janet Yellen</a> is facing criticism for bowing repeatedly to a <a href="https://www.dailywire.com/topic/china">Chinese</a> official during a visit to Beijing on Saturday.
Video <a href="https://www.youtube.com/watch?v=20d4DtvIMtk">published by Reuters</a> shows Yellen smiling and while giving a slight bow three times as she shook hands with Chinese Vice Premier He Lifeng, who did not bow during the seconds-long clip.
“Never, ever, ever,” Bradley Blakeman, a top White House aide to President George W. Bush, <a href="https://nypost.com/2023/07/08/us-treasury-secretary-janet-yellen-commits-embarrassing-bow-during-beijing-visit/?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=nypost">told The New York Post</a> in response to the exchange. “An American official does not bow. It looks like she’s been summoned to the principal’s office, and that’s exactly the optics the Chinese love.”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Treasury Secretary Janet Yellen greets Chinese Vice Premier He Lifeng in Beijing earlier today <a href="https://t.co/iYcA7Jmuz6">pic.twitter.com/iYcA7Jmuz6</a>
&mdash; RNC Research (@RNCResearch) <a href="https://twitter.com/RNCResearch/status/1677812728277204992?ref_src=twsrc%5Etfw">July 8, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The publication also reported Jerome Cohen, an emeritus professor at New York University and expert in Chinese law and government, said, “Bowing is not part of the accepted protocol.&#8221;
While some argued the display was not a big deal, others reacted with disgust on social media as the video of Yellen bowing was shared by various accounts, including one for the Republican National Committee.
&#8220;I can’t stand this woman,&#8221; <a href="https://twitter.com/MarinaMedvin/status/1677848685386821635">tweeted</a> defense attorney Marina Melvin. &#8220;BTW she’s bowing to him because she genuinely wants to. It’s natural for her. She’s an obsequious commie lover.&#8221;
Grabien founder Tom Elliott <a href="https://twitter.com/tomselliott/status/1677835387559895040">said</a>, &#8220;Her bowing is an embarrassment to every non-communist American.&#8221;
&#8220;How many times does she think she has to bow?&#8221; <a href="https://twitter.com/mirandadevine/status/1677834119462416385">asked</a> New York Post columnist Miranda Devine, who added a &#8220;grimacing face&#8221; emoji.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
How many times does she think she has to bow? 😬 <a href="https://t.co/NAvHnLRjCf">https://t.co/NAvHnLRjCf</a>
&mdash; Miranda Devine (@mirandadevine) <a href="https://twitter.com/mirandadevine/status/1677834119462416385?ref_src=twsrc%5Etfw">July 9, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Yellen had an introductory meeting with He to &#8220;build on&#8221; U.S. President Joe Biden and Chinese leader Xi Jinping&#8217;s &#8220;guidance to deepen engagement between key senior officials on macroeconomic issues,&#8221; <a href="https://home.treasury.gov/news/press-releases/jy1601">said</a> a readout from the Treasury Department.
&#8220;The meeting was candid, constructive, and comprehensive,&#8221; the readout added. &#8220;While raising issues of concern, Secretary Yellen discussed the Administration’s approach to seek healthy economic competition with China, with a level playing field for American workers and businesses. They also exchanged views on global and domestic macroeconomic outlooks.&#8221;
The readout continued, &#8220;Secretary Yellen also conveyed that even when the United States and China have disagreements, it is vital that the two countries find ways to work together on issues of shared – and global – concern, including debt distress in low-income and emerging economies and climate finance.&#8221;
<a href="https://www.washingtonpost.com/business/2023/07/08/yellen-beijing-meeting-he-lifeng/">According to The Washington Post</a>, Yellen flubbed He&#8217;s name, calling him &#8220;Vice Premier Hu,&#8221; as they spoke about shoring up ties between their respective nations during a <a href="https://www.dailywire.com/news/u-s-cheers-candid-talks-with-china-after-months-of-rising-tensions">time of rising tensions</a>.

US Treasury Secretary Janet Yellen Visits Beijing

Treasury Secretary Ripped For Bowing To Chinese Official

President <a href="https://www.dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden</a> and House Speaker <a href="https://www.dailywire.com/topic/kevin-mccarthy" target="_blank" rel="noopener">Kevin McCarthy</a> (R-CA) are expected to meet on Monday to get <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> negotiations back on track.
McCarthy said the plan for another round of face-to-face talks between the leaders emerged from a &#8220;productive&#8221; conversation by phone as Biden flew back to the United States from Japan on Sunday.
“I think we can solve some of these problems if he understands what we’re looking at,” the speaker told reporters on Capitol Hill, <a href="https://apnews.com/article/debt-limit-default-biden-mccarthy-spending-cuts-a3103f25ac6772816330f82481388f17" target="_blank" rel="noopener">according to the Associated Press</a>. “But I’ve been very clear to him from the very beginning. We have to spend less money than we spent last year.&#8221;
The White House confirmed the pair spoke by phone on Sunday and made arrangements to revive negotiations that had hit a snag leading into the weekend.
&#8220;Their staffs will reconvene at 6 p.m. this evening to discuss remaining issues. The President and the Speaker will meet later tomorrow,&#8221; a White House official told reporters.
Time is running out to end the standoff between the White House and the GOP-led House, which passed a bill that would allow the limit to be lifted by $1.5 trillion in exchange for spending cuts and reforms. Congressional leaders met with Biden at the White House last week, underscoring progress made in creating a dialogue, but conversations were <a href="https://apnews.com/article/debt-limit-mccarthy-biden-default-negotiations-1b97de28d26b85da268cfd1c1e4a986a" target="_blank" rel="noopener">stop-and-go</a> heading the weekend.
&#8220;There’s a lot of things that they refuse to entertain, and they just said revenue is off the table,&#8221; Biden <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/05/21/remarks-by-president-biden-in-a-press-conference/" target="_blank" rel="noopener">said of GOP negotiators during a press conference</a> before leaving Japan. &#8220;Well, revenue is not off the table. And so, that’s what I — we continue to have a significant disagreement on, on the revenue side.&#8221;
While some Democrats in Congress have pushed Biden to <a href="https://twitter.com/ThisWeekABC/status/1660288118677811203" target="_blank" rel="noopener">consider a &#8220;Plan B,&#8221;</a> Republicans are focused on reaching an agreement with the White House.
Biden is &#8220;just making more excuses not to negotiate a responsible debt ceiling deal that will raise the debt ceiling, pay our bills, protect the good faith and credit of the United States, but also deal with the spending problem,&#8221; House Budget Committee Chairman Jodey Arrington (R-TX) <a href="https://twitter.com/ThisWeekABC/status/1660275107233710083" target="_blank" rel="noopener">told ABC News</a> on Sunday.
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The Treasury Department said it has been enacting “extraordinary measures” since January when the United States hit its statutory limit of roughly $31.4 trillion, and has warned of dire economic consequences if the country is unable to reach a deal to lift the debt ceiling.
<a href="https://www.dailywire.com/news/yellen-says-low-odds-of-u-s-paying-all-bills-past-mid-june-without-debt-ceiling-deal" target="_blank" rel="noopener">During an appearance</a> Sunday on NBC, Treasury Secretary Janet Yellen warned the federal government would likely no longer be unable to meet all its financial obligations by mid-June.
&#8220;There&#8217;s always uncertainty about tax receipts and spending,&#8221; Yellen said. &#8220;And so it&#8217;s hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15th, while being able to pay all of our bills, is quite low.&#8221;

President Joe Biden, VP Kamala Harris, and House Speaker Kevin McCarthy

Biden And McCarthy Set To Meet After ‘Productive’ Chat On Debt Ceiling

Biden And McCarthy Set To Meet After 'Productive' Chat On Debt Ceiling

Congress

Debt Ceiling

Joe Biden

Kevin McCarthy

Politics

Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> views mid-June as the likely time period when the United States can no longer pay all its obligations without a <a href="https://www.dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> deal.
During a Sunday appearance on NBC News, Yellen gave her most specific prediction to date as talks between the White House and Congress <a href="https://www.dailywire.com/news/mccarthy-says-biden-beholden-to-radical-socialists-potus-calls-gop-debt-ceiling-position-extreme" target="_blank" rel="noopener">appear to hit a snag</a>.
&#8220;What is the likelihood we can get to the June 15th tax receipts to avoid breaching the debt ceiling? Can you put a percentage on it? Is it 20%, 40%, something like that?&#8221; asked &#8220;Meet the Press&#8221; moderator Chuck Todd.
&#8220;There&#8217;s always uncertainty about tax receipts and spending,&#8221; Yellen replied. &#8220;And so it&#8217;s hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15th, while being able to pay all of our bills, is quite low.&#8221;
Yellen <a href="https://www.dailywire.com/news/yellen-says-nation-could-face-debt-default-in-less-than-three-weeks" target="_blank" rel="noopener">notified Congress last week</a> that she still believes a default could happen as early as June 1. &#8220;If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests,&#8221; she warned.
The Treasury Department has been enacting “extraordinary measures” since January, when the United States hit its statutory limit of roughly $31.4 trillion.
&#8220;What these involve are taking some funds that are invested in non-marketable government security,&#8221; Yellen explained on Sunday. &#8220;An example would be the Civil Service Retirement Fund. And first, taking inflows that would normally be invested in non-marketable securities, and leaving it in cash because those securities we would typically issue would count towards the debt ceiling. By leaving it in cash, we conserve room under the debt ceiling to issue a debt to the market.&#8221;
Asked about skepticism about the Treasury Department&#8217;s forecast, Yellen noted that the Congressional Budget Office <a href="https://www.cbo.gov/publication/59160" target="_blank" rel="noopener">also warned</a> of there being a risk that the government will not be able to pay all of its debts at some point during the first two weeks of June without a debt limit solution.
Yellen declined to state an exact date for when a default could happen, instead stressing that her assessment has not changed since last week. June is still the earliest a default could happen, she emphasized.
&#8220;I indicated in my last letter to Congress that we expect to be unable to pay all of our bills in early June, and possibly as soon as June 1st. And I will continue to update Congress, but I certainly haven&#8217;t changed my assessment,&#8221; Yellen said. &#8220;So I think that that&#8217;s a hard deadline.&#8221;
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Yellen also refused to divulge what bills the United States might first choose not to pay over others when asked by Todd.
&#8220;I would say we&#8217;re focused on raising the debt ceiling and there will be hard choices if that doesn&#8217;t occur. There can be no acceptable outcomes if the debt ceiling isn&#8217;t raised, regardless of what decisions we make,&#8221; she said.
RELATED: <a href="https://www.dailywire.com/news/mccarthy-says-biden-beholden-to-radical-socialists-potus-calls-gop-debt-ceiling-position-extreme">McCarthy Says Biden Beholden To &#8216;Radical Socialists,&#8217; POTUS Calls GOP Debt Ceiling Position &#8216;Extreme&#8217;</a>

Jent Yellen

Yellen Says ‘Low’ Odds Of U.S. Paying All Bills Past Mid-June Without Debt Ceiling Deal

Yellen Says 'Low' Odds Of U.S. Paying All Bills Past Mid-June Without Debt Ceiling Deal

Veteran <a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">bank</a> executives are meeting with senior lawmakers and federal officials as the government comes within two weeks of a potential <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">debt</a> default.
The <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a>, a statute established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the government from spending beyond a predetermined national debt limit of $31.4 trillion, exceeded the threshold earlier this year. Treasury Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> said in a <a href="https://home.treasury.gov/news/press-releases/jy1483" target="_blank" rel="noopener">letter</a> that her agency expects to default on obligations as early as the first day of June unless the debt limit is amended.
Senate Majority Leader <a href="http://dailywire.com/topic/chuck-schumer" target="_blank" rel="noopener">Chuck Schumer</a> (D-NY) hosted a meeting with JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser on Wednesday morning, according to a <a href="https://www.bloomberg.com/news/articles/2023-05-17/dimon-fraser-other-bank-ceos-to-meet-schumer-on-debt-limit#xj4y7vzkg" target="_blank" rel="noopener">report</a> from Bloomberg. Dimon informed the outlet that his financial institution created a “war room” that will monitor contingencies should lawmakers fail to make a deal to increase the debt limit.
“I asked them to make sure that they tell everybody that default should not be an option,” Schumer told journalists after the meeting with Dimon and Fraser, according to a <a href="https://www.cnn.com/2023/05/17/business/bank-ceos-schumer-debt-ceiling/index.html" target="_blank" rel="noopener">report</a> from CNN. An unnamed source told the outlet that the conversation between Schumer and the executives was “frank,” noting that the lawmaker prompted them to ask every member of Congress to explicitly commit themselves to avoid a default.
A default would likely induce a recession as the federal government, a major borrower of funds that investors around the world generally consider to be reliable, neglects to repay obligations.
The national debt, which now surpasses $31.7 trillion, nevertheless offers persistent financial risk and functions as a damper on long-term economic growth. Elevated interest rates on the national debt have <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">weighed</a> on the budget in recent months as lawmakers are forced to allocate more tax revenue toward servicing the obligations rather than funding federal programs.
The executives are currently in the nation’s capital for an annual Bank Policy Institute summit. Yellen is scheduled to meet with the two executives, as well as Bank of America CEO Brian Moynihan, on Thursday afternoon.
The meeting with Schumer comes one day after President Joe Biden and House Speaker Kevin McCarthy (R-CA) held talks to <a href="https://www.dailywire.com/news/biden-and-mccarthy-make-progress-after-latest-debt-ceiling-talks" target="_blank" rel="noopener">discuss</a> possible mechanisms to raise the debt limit. Republicans desire to link a temporary increase in the debt ceiling with spending limits, while Democrats say they prefer separate processes for debt limit negotiations and budget reforms.
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The White House said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/16/readout-of-president-bidens-meeting-with-congressional-leadership-on-preventing-default/" target="_blank" rel="noopener">readout</a> that the meeting was “productive and direct,” while McCarthy said in his own <a href="https://www.speaker.gov/speaker-mccarthys-reaction-to-todays-meeting-with-the-president/" target="_blank" rel="noopener">remarks</a> that “it is possible to get a deal by the end of the week.”
Schumer, Dimon, and Fraser also discussed the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, the latter of which JPMorgan Chase <a href="https://www.dailywire.com/news/jpmorgan-chase-the-nations-largest-bank-acquires-first-republic-bank-after-government-takeover" target="_blank" rel="noopener">acquired</a> in a deal brokered by federal regulators. Dimon insisted to reporters that “regional banks are strong.”
The implosion of the three medium-sized banks, where the vast majority of account balances exceeded the $250,000 threshold guaranteed by the Federal Deposit Insurance Corporation, prompted the government-backed company to <a href="https://www.dailywire.com/news/financial-authorities-announce-buyer-for-collapsed-silicon-valley-bank" target="_blank" rel="noopener">secure</a> insured and uninsured accounts at the first two financial institutions in early March to prevent further bank runs. Other regional banks, such as PacWest and Western Alliance, have witnessed significant <a href="https://www.dailywire.com/news/regional-bank-stock-plummets-after-company-reveals-deposits-dropped-again" target="_blank" rel="noopener">turmoil</a> in the stock market and increased withdrawal levels in recent weeks.

Jamie Dimon

Major Bank Sets Up ‘War Room’ As Nation Approaches Debt Default

Major Bank Executives Meet With Democrats As Nation Approaches Debt Default

Bank of America

Banks

Chuck Schumer

Citigroup

JP Morgan

<a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury</a> Secretary <a href="http://dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> warned <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">congressional</a> leadership on Monday that the federal government could face a <a href="http://dailywire.com/topic/national-debt" target="_blank" rel="noopener">debt</a> default in less than three weeks if an agreement on the <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> is not quickly reached with President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a>.
The debt ceiling, a policy that prevents the federal government from spending beyond a predetermined national debt limit of $31.4 trillion, surpassed the threshold earlier this year. Yellen said in her <a href="https://home.treasury.gov/news/press-releases/jy1483" target="_blank" rel="noopener">letter</a> to lawmakers that the Treasury Department expects to default on obligations as early as June 1 unless the debt limit is either suspended or increased.
“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” she wrote. “In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June.”
Yellen added that the exact date of the debt default is “impossible to predict,” although the June 1 estimate is based on federal receipt, outlay, and debt data.
“If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests,” she continued. “I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible.”
The letter from Yellen, which is one of several similar alerts she has issued regarding the consequences of a debt default, comes days after the Congressional Budget Office warned in a <a href="https://www.cbo.gov/publication/59160" target="_blank" rel="noopener">report</a> that the “extent to which the Treasury will be able to fund the government’s ongoing operations will remain uncertain throughout May.” The document added that the “extraordinary measures” officials have used to fund operations could expire “at some point in the first two weeks of June.”
House Speaker Kevin McCarthy (R-CA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY), and Senate Minority Leader Mitch McConnell (R-KY), the leaders to whom Yellen addressed her letter, have negotiated in recent days with officials from the Biden administration about possible mechanisms to amend the debt limit. Disagreements center on whether the move will occur with spending reforms and budget cuts.
Members of the House Freedom Caucus, a bloc of conservatives without which McCarthy is unable to pass legislation due to the narrow Republican majority in the House, have <a href="https://www.dailywire.com/news/house-freedom-caucus-chairman-responds-as-white-house-lobs-spurious-claims-at-spending-cut-proposal" target="_blank" rel="noopener">said</a> they would vote to raise the debt ceiling in exchange for a framework that returns expenditures to fiscal year 2022 levels, increase the debt limit only for the next year, and cap annual spending growth at 1% over the next decade. The budget <a href="https://www.dailywire.com/news/kevin-mccarthy-unveils-plan-to-responsibly-raise-debt-limit" target="_blank" rel="noopener">proposal</a> unveiled by McCarthy mirrored the framework and successfully <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> through the House last month alongside a one-year increase in the debt ceiling.
Biden is slated to meet with Democratic and Republican leaders for a second time on Tuesday. “I really think there’s a desire on their part, as well as ours, to reach an agreement, and I think we’ll be able to do it,” the commander-in-chief <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/05/14/remarks-by-president-biden-in-press-gaggle-12/" target="_blank" rel="noopener">told</a> reporters over the weekend. McCarthy, on the other hand, <a href="https://www.nbcnews.com/politics/white-house/treasury-says-us-risks-breaching-debt-ceiling-june-1-rcna84523" target="_blank" rel="noopener">told</a> reporters that the two sides are still “far apart” and contended that the administration is “not talking anything serious.”
A default would likely cause a recession as the federal government, a major borrower of funds that investors across the world broadly consider to be stable, neglects to repay obligations. The national debt, which now surpasses $31.7 trillion, is meanwhile a source of persistent financial risk and a damper on long-term economic growth.

Yellen Says Nation Could Face Debt Default In Less Than Three Weeks

Yellen Says Nation Could Face Default In Less Than Three Weeks

Sen. <a href="http://dailywire.com/topic/joe-manchin?_gl=1*m94erc*_ga*NzUzNDA5ODIxLjE2NzkzMjkzNzM.*_ga_CZKR9ZYKJP*MTY4Mzg5NjkxNC4yMTQuMS4xNjgzODk3Njg5LjU5LjAuMA.." target="_blank" rel="noopener">Joe Manchin</a> (D-WV) contended alongside more than three dozen Republican colleagues that the <a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury Department</a> is pressuring state insurance regulators to consider factors linked to the environmental, social, and corporate governance movement, also known as <a href="http://dailywire.com/topic/esg" target="_blank" rel="noopener">ESG</a>.
A <a href="https://www.manchin.senate.gov/newsroom/press-releases/manchin-leads-effort-to-block-esg-agenda-in-state-regulated-insurance" target="_blank" rel="noopener">letter</a> from members of the <a href="https://www.dailywire.com/topic/u-s-senate" target="_blank" rel="noopener">Senate</a> asserted last week that the Federal Insurance Office, which was <a href="https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office" target="_blank" rel="noopener">created</a> to “monitor all aspects of the insurance sector,” has improperly sought to influence state-level authorities and insurance firms to consider climate risk. The entity sought public input on “how climate change could affect the insurance market” in August 2021 and proposed an “unworkable data collection effort” in order to determine which “insurance coverage areas are most susceptible to climate-related risks” in October 2022.
“Though the FIO’s actions to date do not enact formal rules or regulations, they do place pressure on state insurance regulators and insurers themselves,” the letter addressed to Treasury Secretary Janet Yellen said. “We are concerned that this may ultimately result in state insurance regulators and insurers feeling coerced into adopting one-size-fits-all climate-risk mitigation policies rather than building on existing efforts to mitigate risks and manage policyholders’ exposure to changing weather patterns as deemed appropriate by the insurers and state insurance regulators on the ground, which has served the industry and public well.”
The data collection effort from the Federal Insurance Office would assemble information about property and casualty insurance risks purportedly stemming from climate change in various locales across the nation. Yellen <a href="https://home.treasury.gov/news/press-releases/jy1030" target="_blank" rel="noopener">commented</a> last year that the impact of Hurricane Ian in Florida demonstrates how “Americans are being affected by the increasing costs of climate change.”
The letter added that the actions could violate more than a century of precedent in which insurance is regulated by individual states rather than the federal government.
“The Biden administration is ignoring steps insurers and state insurance regulators are already taking and instead utilizing the FIO to continue pushing ESG policies as part of its unrealistic environmental agenda,” continued the letter, which was likewise signed by lawmakers such as Sen. John Thune (R-SD), Sen. Tim Scott (R-SC), and Sen. John Barrasso (R-WY).
Authors of the letter also cited a recent <a href="https://www.dailywire.com/news/bidens-woke-investment-rule-stays-intact-as-house-fails-to-override-veto" target="_blank" rel="noopener">veto</a> from President Joe Biden that overturned a resolution to end a Labor Department rule which permits retirement fiduciaries to consider climate change and other ESG factors “when they make investment decisions and when they exercise shareholder rights, including voting on shareholder resolutions and board nominations.” Manchin, who faces re-election next year in a broadly conservative state, was one of only three Democrats in Congress to support the resolution, which would have preserved prior rules that required fiduciaries to “base investment decisions on financial factors” alone.
Skeptics of the ESG movement contend that the philosophy intermixes political causes, such as decreasing carbon emissions, in a manner that compromises or distracts from profitability. “The administration’s unrelenting campaign to advance a radical social and environmental agenda is only exacerbating these challenges,” Manchin said in a <a href="https://www.dailywire.com/news/absolutely-infuriating-manchin-blasts-biden-for-vetoing-rebuke-of-esg" target="_blank" rel="noopener">statement</a> after the veto.
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Endorsements of the ESG movement from the White House also correspond with attempts to more strictly regulate appliances such as gas stoves and dishwashers, as well as crack down on emissions at power plants fueled by coal and natural gas. Manchin threatened this week to <a href="https://www.dailywire.com/news/manchin-shreds-biden-over-expected-crackdown-on-power-plants-reveals-how-he-will-respond" target="_blank" rel="noopener">oppose</a> every nominee sent to the Environmental Protection Agency until the power plant rules are reversed.

Joe Manchin

Manchin Joins 37 Republicans To Oppose Another Biden ESG Move

Climate Change

This article is adapted from today’s Morning Wire Afternoon Update. To listen to the podcast version, click <a href="https://www.dailywire.com/podcasts/morning-wire" target="_blank" rel="noopener">here</a>.
Donald Trump-E. Jean Carroll Verdict
Former President Donald Trump was <a href="https://www.dailywire.com/news/breaking-jury-rules-trump-committed-battery-on-e-jean-carroll-defamed-her" target="_blank" rel="noopener">found</a> liable Tuesday of sexual abuse and defamation in E. Jean Caroll’s lawsuit that accused him of raping her decades ago.
Title 42 Chaos
Law enforcement is sweeping the streets of <a href="https://www.dailywire.com/news/law-enforcement-to-clear-thousands-of-illegal-migrants-from-el-paso-streets-as-end-of-title-42-looms" target="_blank" rel="noopener">El Paso, Texas</a>, for thousands of illegal immigrants camped in the city. Late Monday night, U.S. Customs and Border Protection announced a “targeted enforcement operation” taking place in El Paso ahead of the repeal of Title 42. 
About 2,500 migrants are living on the streets of El Paso, some reportedly with gang ties. The operation comes as thousands more migrants are expected to cross the border from Mexico into El Paso after Title 42 is lifted on Thursday at 11:59 p.m. 
El Paso Mayor Oscar Leeser previously estimated that up to 15,000 migrants could be in Ciudad Juárez, across the border from El Paso, preparing to enter the U.S. later this week. Meanwhile, in the last week, border patrol agents made 55,000 apprehensions of individuals who crossed the border illegally. That number is expected to rise dramatically with the expiration of Title 42.  So far, the Biden administration has indicated it will reject any Republican proposals to deal with the problem.
Janet Yellen Warns Corporations About Recession Risks
A <a href="https://www.dailywire.com/news/janet-yellen-warns-ceos-about-recession-risks-from-debt-ceiling-battle-report" target="_blank" rel="noopener">new report indicates</a> that Treasury Secretary Janet Yellen contacted multiple prominent American business leaders on Monday to detail the financial risk stemming from the current debt ceiling controversy. 
In recent days, Yellen held multiple one-on-one conversations with individual executives about the “dangerous consequences of the current brinkmanship,” according to a report from Reuters. Biden administration officials have repeatedly claimed that Republican lawmakers are risking a worldwide recession by insisting that any amendment to the debt ceiling must be accompanied by meaningful spending cuts. Meanwhile, Biden is meeting with Congressional GOP and Democratic leaders Tuesday afternoon to discuss a plan to raise the limit.
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Hunter Biden Criminal Proof?
Attorneys for the IRS <a href="https://www.dailywire.com/news/attorneys-for-irs-whistleblower-in-hunter-biden-probe-meet-with-congress" target="_blank" rel="noopener">whistleblower</a> who alleges the criminal investigation into <a href="https://www.dailywire.com/topic/hunter-biden" target="_blank" rel="noopener">Hunter Biden</a> has become corrupted by lies and politics reportedly met with members of <a href="https://www.dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a>.
<a href="https://www.cnn.com/2023/05/05/politics/hunter-biden-irs-whistleblower-congressional-investigation/index.html" target="_blank" rel="noopener">Sources told CNN</a> the conversation on Friday with investigators from the GOP-led House and Democrat-controlled Senate helps lay the groundwork for what could be a formal disclosure involving sensitive tax information in the near future. Meanwhile, House Oversight Chairman James Comer (R-KY) is urging the Justice Department <a href="https://www.dailywire.com/news/comer-urges-feds-not-to-indict-hunter-biden-before-wednesday" target="_blank" rel="noopener">not to indict Hunter Biden</a> until Republicans hold a press conference. They intend to present evidence showing how a “web” of LLCs is being used by foreign adversaries to improperly pay members of the Biden family in exchange for favors.
<blockquote class="twitter-tweet">
🚨 A very credible whistleblower has provided info to Congress.
I will press forward in my <a href="https://twitter.com/GOPoversight?ref_src=twsrc%5Etfw">@GOPoversight</a> investigation into the Biden family’s influence peddling to determine if <a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a> is compromised.
I intend to provide the American people more facts this week. <a href="https://twitter.com/MariaBartiromo?ref_src=twsrc%5Etfw">@MariaBartiromo</a> <a href="https://t.co/2F2ntRiNgz">pic.twitter.com/2F2ntRiNgz</a>
— Rep. James Comer (@RepJamesComer) <a href="https://twitter.com/RepJamesComer/status/1655226994957729792?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 7, 2023</a></blockquote>
The press conference is scheduled for 9 a.m. ET on Wednesday.
Ex- Pakistan Prime Minister Arrested
The former prime minister of Pakistan was <a href="https://www.dailywire.com/news/former-prime-minister-of-south-asian-country-arrested-by-paramilitary-forces" target="_blank" rel="noopener">arrested</a> on Tuesday by paramilitary forces as the popular leader faces terrorism and corruption-related charges. Imran Khan was ousted from his role as prime minister in April 2022 by a no-confidence vote in parliament after being accused of corruption and violating the constitution. Khan <a href="https://www.dailywire.com/news/former-pakistani-prime-minister-shot?utm_source=facebook&amp;utm_medium=social&amp;utm_campaign=dwbrand" target="_blank" rel="noopener">survived a shooting</a> in November and has claimed that corrupt officials coordinated his removal from office. Police say after his arrest, he was taken to the National Accountability Bureau for questioning. Supporters took to the streets in protest, starting fires and clashing with police.
To listen to the audio version of this podcast, <a href="https://podcasts.apple.com/us/podcast/morning-wire/id1576594336" target="_blank" rel="noopener">click here</a>. And for more in-depth discussion of the biggest stories of the day, listen to the latest full episode of Morning Wire every morning.

Tuesday stock photo

Tuesday Afternoon Update: Donald Trump-E. Jean Carroll Verdict, Title 42 Chaos, Hunter Biden Criminal Proof?

Donald Trump

Hunter Biden

Morning Wire

Pakistan

Title 42

<a href="https://www.dailywire.com/topic/treasury-department" target="_blank" rel="noopener">Treasury</a> Secretary <a href="https://www.dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> contacted multiple prominent American <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">business</a> leaders on Monday to detail the financial <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">risk</a> stemming from the current <a href="http://dailywire.com/topic/debt-ceiling" target="_blank" rel="noopener">debt ceiling</a> controversy.
The debt ceiling, a policy established by <a href="http://dailywire.com/topic/congress" target="_blank" rel="noopener">Congress</a> that prevents the federal government from spending beyond a predetermined national debt limit of $31.4 trillion, surpassed the threshold earlier this year. Yellen <a href="https://www.dailywire.com/news/yellen-warns-of-debt-default-as-early-as-june-1" target="_blank" rel="noopener">warned</a> last week that the nation could face a default as soon as the first day of June unless the debt limit is suspended or increased.
The veteran economist held multiple one-on-one conversations with individual executives about the &#8220;dangerous consequences of the current brinkmanship&#8221; in recent days, one of two unnamed sources familiar with the matter said in a <a href="https://www.reuters.com/business/yellen-is-calling-ceos-personally-warn-us-debt-ceiling-sources-2023-05-08/?taid=64598be5454148000194d30c&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter" target="_blank" rel="noopener">report</a> from Reuters. The sources declined to name the executives with whom Yellen discussed the phenomenon.
Biden administration officials have repeatedly asserted that Republican lawmakers are risking a worldwide recession by insisting that any amendment to the debt ceiling should be accompanied by meaningful spending cuts or limits upon future expenditures. Yellen said in an <a href="https://www.dailywire.com/news/janet-yellen-suggests-republicans-are-holding-a-gun-to-the-head-of-the-american-people-over-debt-ceiling" target="_blank" rel="noopener">interview</a> on Sunday that Republicans are thereby holding a “gun to the head of the American people,” contending that the effort to achieve “agreement on budget priorities” before increasing the debt limit “simply is unacceptable” due to the recession risks.
House Speaker Kevin McCarthy (R-CA) and President Joe Biden <a href="https://www.dailywire.com/news/white-house-takes-adversarial-posture-toward-mccarthy-ahead-of-budget-cut-meeting-heres-what-they-want-him-to-do" target="_blank" rel="noopener">met</a> in early February to discuss possible mechanisms to raise or eliminate the debt limit while reconsidering budget priorities, but the commander-in-chief delayed further meetings for several months. The two officials are scheduled to meet for the second time alongside other lawmakers on Tuesday.
White House Press Secretary Karine Jean-Pierre said in a Monday <a href="https://www.whitehouse.gov/briefing-room/press-briefings/2023/05/08/press-briefing-by-press-secretary-karine-jean-pierre-32/" target="_blank" rel="noopener">briefing</a> that Biden would attempt to create separate negotiations processes for budget cuts and the debt ceiling. “Remember, that’s regular order,” she told reporters. “That is the way that we’re supposed to be doing this: having a negotiation on budget, not connecting it to the debt ceiling.”
Members of the House Freedom Caucus, a bloc of conservative Republicans, have <a href="https://www.dailywire.com/news/house-freedom-caucus-chairman-responds-as-white-house-lobs-spurious-claims-at-spending-cut-proposal" target="_blank" rel="noopener">said</a> they would consider voting to raise the debt ceiling in exchange for a framework that returns expenditures to fiscal year 2022 levels, raises the debt ceiling only for the next year, and limits annual spending growth to 1% over the next decade. McCarthy unveiled a budget <a href="https://www.dailywire.com/news/kevin-mccarthy-unveils-plan-to-responsibly-raise-debt-limit" target="_blank" rel="noopener">proposal</a> that mirrored the framework and <a href="https://www.dailywire.com/news/gop-led-house-passes-mccarthys-plan-to-raise-debt-limit" target="_blank" rel="noopener">passed</a> the measure through the House two weeks ago. The narrowly Republican majority requires votes from the House Freedom Caucus to pass bills.
Jean-Pierre said last week that “the only practical path to avoid default is for Congress to suspend the debt limit without conditions” because of the “limited time” before the potential default. House Freedom Caucus Chairman Scott Perry (R-PA) previously <a href="https://www.dailywire.com/news/freedom-caucus-chair-blasts-white-house-for-punting-debt-ceiling-talks-for-months-then-saying-there-is-limited-time-to-negotiate" target="_blank" rel="noopener">told</a> The Daily Wire that the remarks were “like a pyromaniac starting a fire and watching it burn for months suddenly declaring it needs to be put out while simultaneously pouring more gas on it.”
<a class="c-link" href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" data-stringify-link="https://onelink.to/dwapp" data-sk="tooltip_parent" aria-describedby="sk-tooltip-56458">CLICK HERE TO GET THE DAILY WIRE APP</a>
Forty-three Republican members of the Senate recently <a href="https://www.dailywire.com/news/debt-ceiling-battle-lines-drawn-ahead-of-white-house-meeting" target="_blank" rel="noopener">endorsed</a> a letter declaring that they would oppose a “clean” debt ceiling bill separate from any spending cuts or other policy concessions. Meanwhile, Senate Majority Leader Chuck Schumer (D-NY) announced that the upper chamber would hold hearings on the bill to “expose the true impact of this reckless legislation on everyday Americans.”

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