Russia Monitoring US Economy Amid Possible Default – Russia is attentively monitoring the status of the US economy as talks about a possible debt default heat up, Kremlin Spokesman Dmitry Peskov said on Tuesday. “We see that the U.S. economy, just as the global economy, is currently experiencing certain problems,” Peskov was quoted by Russian news outlet Tass as saying.
“Inflation expectations continue staying at a rather high level,” he stressed, adding: “Certainly, we are keeping a close eye on all that. All our fiscal agencies.” The United States is currently in the grip of a debt-ceiling crisis. Treasury Secretary Janet Yellen cautioned on Monday that if Congress does not increase or suspend the debt ceiling, the Treasury Department will be unable to pay all of the government’s financial obligations by June 1.
Noting that this is not the first time serious problems have emerged in the U.S. economy, the Kremlin spokesperson described: “This occurs in the United States on an incredibly regular basis. They found solutions up to now. We will take a close look this time also.”
According to the U.S. Treasury Department’s website, Congress has acted 78 times since 1960 to permanently raise, temporarily extend, or change the definition of the debt limit. In addition to closely watching the US economy, Russia is stepping up its de-dollarization efforts after the US seized over $300 billion in Russian central bank assets frozen by sanctions.
Last week, Russian President Vladimir Putin stated that US policies will backfire as Russia strengthens ties with friendly countries in Eurasia, Africa, and Latin America. Russia is also in talks with member countries about developing a BRICS currency. Brazil, Russia, India, China, and South Africa make up the BRICS nations. Last week, the chairman of the State Duma Committee on the Financial Market stated that a BRICS currency agreement could be reached in 2023.