Analysis: The United States can publish bankruptcy on government debt this year if Congress does not act in a timely manner
The United States may announce bankruptcy in government debt from mid -July to early October if Congress does not raise its debt ceiling, analysts at the Bipartisan Policy Center said, the New York Times reported today.
According to data from the Finance Ministry’s website, the US State Long on March 24 reached $ 36.22 trillion.
« The Party Political Center predicts that the Day C (X)- a description for the period when the US Treasury will not be able to fully and timely fulfill its obligations- will perform between mid-July and early October, » the statement said.
Analysts specify that the exact date of day C will most affect the income the state will receive from tax collection in April. According to the center data, although it is unlikely that tax revenues will have a significant deviation from expectations, and the risk of day C will appear in early June.
According to the Center, think tank located in Washington, bankruptcy forecasts may also depend on the start of the June hurricane season, the state of the economy, revenue from new customs duties on imported goods, as well as changes in the deadlines for planned spending that the Congress and Department of Government will bring. The Center’s statement emphasized that there may be more effective bankruptcy if the US Congress does not take timely actions to increase the ceiling of government debt.
-Lawmakers have no freedom to delay the decision on the issue of the government debt limit. Congress has a lot of work in 2025, but currently the highest priority should be to resolve this issue before the day C. History has shown that even the approach to day C can cause market instability, increased borrowing costs and reducing confidence in US fiscal stability, said Shay Akabas, director of the Center’s economic policy.
