Donald Trump to be welcomed by new debt limit? Treasury Secretary Janet Yellen drops new bombshell

The US Treasury Department has sounded a new alarm bell in the form of a new US national debt limit that could come into picture on January 14 next year, according to Secretary Janet Yellen. This would mean that as soon as Donald Trump comes to power at the White House after taking over the reigns from Joe Biden, his administration would witness the United States could come up against its debt ceiling, according to The Jakarta Post's latest report.

Are there any risks associated with the debt limit of the US Treasury?

For now, the US national debt ceiling has been suspended by the Congress, with its deadline being January 1. This means that on Jan. 2 next year, a new limit will be set matching the amount of debt, that will be stamped in by the US Treasury.

However, if the US were to hit this new US national debt limit, things ahead could be quite complicated, based on the political scenarios across the times. The government risks defaulting on payment obligations, if the debt limit is not raised, and would mean all sorts of problems for the US economy, including inflation and recession fears.

Is he US economy in danger due to the US national debt ceiling?

The Congress, over the years, has raised the debt limit more than a 100 times for the government to meet its spending requirements. But Republicans and other faction of conservatives are typically against this massive spending and borrowing limits, with many Republicans never voting for these hikes during the votes.

Trump has in fact instituted a federal department, DOGE, to cut down massive federal spending in the US, and has placed Elon Musk and Vivek Ramaswamy in-charge of this whole operation, which he plans on implementing throughout his tenure.

FAQs:

Has Donald Trump won the US Presidential elections?
Yes, Donald Trump is currently the new US President-elect, and will be taking up charge from January, 2025 after the inauguration ceremony.

Is the United States economy still recovering from the pandemic crisis?
The US economy had faced some massive turbulence during the Covid-19 pandemic's complete wrath in 2021 and 2022, but is currently in a much better state, as of now, based on their current GDP data.