• Salah Abdullah Al-attar - Editor-in-Chief

  • ع

U.S. Treasury Secretary Urges Congress to Raise Federal Debt Ceiling, Warns of Economic Consequences..

Treasury Secretary Scott Bescent formally requested Congressional leaders to raise or suspend the federal debt ceiling, citing "significant uncertainty" about the federal government's cash flow projections through the coming months.

Key Warning Points:

  1. Cash Flow Uncertainty:

    • "The substantial uncertainty surrounding government cash flow projections makes it impossible to precisely determine how long our liquidity and extraordinary measures will last"

    • Extraordinary measures currently in place to manage liquidity constraints

  2. Critical Timeline:

    • Post-April tax season review indicates probable exhaustion of funds by August

    • Congressional recess period would coincide with liquidity depletion

    • Urges action by mid-July to protect U.S. credit standing

  3. Historical Precedents:

    • Last-minute actions on debt ceiling have previously:

      • Disrupted financial markets

      • Damaged business/consumer confidence

      • Increased short-term borrowing costs for taxpayers

  4. Expert Validation:

    • Treasury Borrowing Advisory Committee's April 29 report confirmed risks:

      • Increased market volatility

      • Higher financing costs

      • Erosion of U.S. financial strength

      • Escalating default risks

Secretary's Direct Appeal:
"We must increase or suspend the debt limit by mid-July – before the scheduled recess – to safeguard the full faith and credit of the United States."

Technical Notes:

  • Maintained all financial terminology (e.g., "extraordinary measures" for "التدابير الاستثنائية")

  • Structured complex Arabic sentences into clear English paragraphs

  • Preserved urgency while avoiding sensationalism

  • Included contextual markers (tax season, Congressional recess) for international readers