As discussions surrounding a potential U.S. debt default escalate, Russia is carefully observing the situation, according to Kremlin Spokesman Dmitry Peskov. Peskov noted that the U.S. and the global economy face challenges with high inflation expectations.
“We see that the U.S. economy, just as the global economy, is currently experiencing certain problems. Inflation expectations continue staying at a rather high level. Indeed, we are keeping a close eye on all that. All our fiscal agencies.”Dmitry Peskov
Debt ceiling deadline approaches, Russia monitors situation
Treasury Secretary Janet Yellen warned that if Congress does not raise or suspend the debt ceiling by June 1, the Treasury Department would be unable to meet all of the U.S. government’s debt obligations.
Peskov acknowledged that this is not the first time the U.S. economy has faced severe problems, but he expressed confidence that solutions would be found, just as they had been in the past. Since 1960, Congress has acted 78 times to address the debt limit in various ways.
In response to the U.S.’s seizure of approximately $300 billion in Russian central bank assets, Russia has been increasing its de-dollarization efforts. President Vladimir Putin stated that U.S. policies would backfire as Russia strengthens ties with friendly nations in Eurasia, Africa, and Latin America.
Furthermore, discussions are underway to establish a common currency for BRICS countries, which include Brazil, Russia, India, China, and South Africa. An agreement on the BRICS currency could potentially be reached in 2023.