The superpower of the world is now under threat. If we talk about the economic front for USA, currently, there are negative news from all corners for the US economy. Several major banks have collapsed in the last few months in the country.
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The United States is facing a financial crisis, as Treasury Secretary Janet Yellen has warned that the government could run out of cash to pay its bills as early as June 1. This news has caused President Joe Biden to call a meeting with the top four congressional leaders in an effort to reach a solution to the problem.
It is worth mentioning that if we look at the last few months, many banks have become insolvent. Besides, the signs for future are not good as well. It is said that more banks may collapse as people have withdrawn more than a trillion dollars from the banks in a few days.
The new estimate has increased the risk of an unprecedented default that could have a significant impact on the global economy. The situation has added new urgency to political calculations in Washington, and negotiations between Democrats and Republicans over the issue of raising the debt limit are expected to be lengthy.
In the past, solutions have included pairing debt-ceiling increases with other budget and spending measures. However, House Republicans have already passed a bill to raise the debt limit that includes cuts to spending, which Democrats have said they will not approve.
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