Yellen: Biden has offered changes that will reduce the US budget deficit by a trillion dollars

Yellen: Biden has offered changes that will reduce the US budget deficit by a trillion dollars

Yellenova: Biden offered changes that would reduce the US budget deficit by trillion dollars

Illustration photo – United States Treasury Secretary Janet Yellen in Kyiv on February 27, 2023.

Washington – US President Joe Biden as part of talks on raising of the debt ceiling offered changes that will lead to a reduction of the budget deficit of the United States by one trillion dollars (roughly CZK 22 trillion). According to the Reuters agency, US Treasury Secretary Janet Yellen said it today.

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According to an AFP source, the proposal presented by Biden to House Speaker Kevin McCarthy would reduce the deficit by “more than a trillion dollars over ten years.” This proposal would expand the previously promised deficit reduction by three trillion dollars over ten years, writes AFP.

In the past fiscal year, which ended last September, the US budget deficit was $1.375 trillion, according to government data. In February, the Congressional Budget Office (CBO) estimated this year's deficit at $1.4 trillion and predicted that between 2024 and 2033 the average annual deficit would be two trillion dollars.

Yellen reiterated today that without increasing the debt ceiling, the American government will run into problems in repaying its obligations at the beginning of June. She warned that if Congress does not pass a debt ceiling increase on time, the Treasury Department and President Biden will face difficult choices. “We will not be able to pay certain obligations,” she declared.

The minister also expressed her belief that an agreement on raising the debt ceiling is possible. “We just have to raise the debt ceiling,” she said. She also pointed to a certain tension that prevails in the financial markets due to the debt ceiling.