“Debt limit” warning from Republican senators to Biden

Republican senators in the US Congress warned US President Joe Biden that they would not support the debt limit increase without structural reforms.

The 24 Republican senators, led by Utah Senator Mike Lee, penned a letter to US President Joe Biden on the debt limit.

The letter said there would be unequivocal opposition to a debt-limit increase without real structural spending reforms that reduce deficit spending and restore “fiscal sense” to Washington.

The letter, which was evaluated as “a complete disaster” for the country’s fiscal policy, said, “Our country has 31 trillion dollars in debt, a level of debt that exceeds the size of our economy right now. Inflation makes life more valuable for American families every day.” terms were used.

“We do not intend to vote for a debt limit increase without structural reforms to address current and future financial realities, effectively enforce budget and spending rules, and manage uncontrolled government policies,” the letter said. term was included.

In the US, the federal government has reached the $31.4 trillion debt limit that could lead to default.

The debt limit, or debt ceiling, means “the upper limit of the amount of money the U.S. government can borrow to pay off its debts.”

Republicans, who have just won a majority in the House of Representatives, are in favor of valuable spending cuts in debt-limit negotiations. Democrats, on the other hand, insist on increasing the debt limit, while rejecting the Republicans’ proposals to cut spending.

There is concern that the debt limit issue, which has become a stalemate between Democrats and Republicans, has shaken the markets in a few months. As recession prospects in the US strengthen, the two-party showdown over the debt limit is more risky than ever.​