Treasury Secretary Janet Yellen has warned of the potential consequences for everyday Americans if the debt limit is not raised.
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US Hits $34.1 Trillion Debt Ceiling, White House and House Republicans Negotiate Potential Solutions
US Hits $34.1 Trillion Debt Ceiling, White House and House Republicans Negotiate Potential Solutions
The US has officially hit its $34.1 trillion debt ceiling and the government has begun "extraordinary measures" to pay bills. House Speaker Kevin McCarthy has accepted an invitation from President Biden to discuss a solution, while Senate Minority Leader Mitch McConnell has said the US "never has and never will" default on its debt. House Republicans have threatened to hold the Biden administration hostage over the debt limit, and the outcome of negotiations between the White House and House Republicans could have a significant impact on the financial security of American households.
Google, one of the world's leading technology companies, has announced a 6% workforce reduction of 12,000 employees, as the economic boom experienced during the pandemic begins to slow. This is one of the biggest rounds of layoffs ever for the company, and adds to the tens of thousands of job losses recently announced by other tech companies such as Microsoft, Amazon, and Facebook parent Meta. The layoffs are a sign of the times, and a reminder that the tech industry is not immune to the effects of the pandemic.
The Federal Reserve is signaling that it will continue to raise interest rates, despite signs of slowing economic activity and inflation. At a press conference, Vice Chair Lael Brainard noted that inflation is still high and Cleveland Fed President Loretta Mester said the policy rate may need to go higher than 5%. The Fed will discuss the policy rate at their upcoming meeting and monitor economic activity and inflation to determine the appropriate rate.
Treasury Secretary Janet Yellen has warned that the United States has reached its legal borrowing capacity and must now rely on "extraordinary measures" to avoid a catastrophic default. President Joe Biden and House Republicans are at odds over how to address the situation, and it is uncertain whether the United States can sidestep a potential economic crisis. The Treasury Department is urging Congress to raise the debt limit as soon as possible to avoid a potential economic crisis.
The U.S. government is set to reach its statutory debt limit on Thursday, prompting the Treasury Department to take “extraordinary measures” to pay the bills. Treasury Secretary Janet Yellen has warned that failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, and it is now up to Congress to act in a timely manner to increase or suspend the debt limit in order to prevent default. The current debt limit showdown could define the tenure of the new GOP majority and the final two years of President Joe Biden’s term.
The costume and party supplies chain Party City has filed for Chapter 11 bankruptcy protection, and is in the process of an expedited restructuring that will substantially lower its debt and free up cash. The company's 800+ stores and website will remain open, and its franchise stores, subsidiaries outside of the U.S., and foil balloons Anagram business are not part of the restructuring. The filing comes as the U.S. retail industry continues to suffer from persistently high inflation and a pullback in customer spending.
Microsoft has announced that it will lay off 10,000 employees over the next eight months as part of cost-cutting measures in response to the global economic slowdown. The affected employees will receive 60 days' notice, health care coverage, stock vesting, and severance pay. Microsoft CEO Satya Nadella said the company is taking steps to weather any economic conditions while investing in its future. The layoffs come as Microsoft continues to invest in new technologies.