Yellen says that the ability of the Ministry of Finance to avoid default is running out

The United States will face a constitutional crisis if Congress fails to agree on raising the national debt ceiling and President Joe Biden will have to apply the constitutional amendment to resolve the debt problem bypassing the legislature. This was announced by U.S. Treasury Secretary Janet Yellen.

“We shouldn’t get to the point where we have to assess whether the president can resolve the national debt issue. That would be a constitutional crisis,” she said in response to a question about the U.S. administration’s ability to invoke the 14th Amendment. The fourth section of the amendment states that the legitimacy of the U.S. national debt should never be questioned. This clause could give the U.S. president the ability to bypass Congress in resolving the national debt problem.

The head of the U.S. Treasury once again urged lawmakers to “do their job” and raise the national debt ceiling, noting that the administration will soon exhaust its resources to prevent a default. “We’ve been applying extraordinary measures for months now, and our ability to do so is coming to an end. Our projections are that we may come to a point in early June where we can’t pay our bills,” she said. – We need to raise the debt ceiling to avoid an economic catastrophe.

According to Yellen, the United States “does not have good options” to resolve the current situation in the event that Congress does not go to raise the debt ceiling.

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