ISTANBUL – United States House of Representatives Speaker Kevin McCarthy on Wednesday proposed raising the nation's debt limit by $1.5 trillion to avoid a default in the world's biggest economy.

His proposal, called the Limit, Save, Grow Act of 2023, would raise the debt limit by $1.5 trillion or through March 31, 2024 --whichever comes first-- return discretionary spending to 2022 levels and limit spending growth to 1 percent annually.

The US debt ceiling currently stands at $31.4 trillion.

McCarthy on Monday criticized President Joe Biden for refusing to negotiate the issues surrounding extending the debt limit, saying "without exaggeration, American debt is a ticking time bomb that will detonate unless we take serious, responsible action."

US Treasury Secretary Janet Yellen has repeatedly urged Congress in recent months to suspend or raise the debt limit to avoid a default on government obligations.

The American economy hit its debt ceiling on Jan. 19, and Yellen said her agency has started taking "extraordinary measures" to avoid a default.

The US has never defaulted on its debt, while the debt ceiling has been raised 22 times between 1997 and 2022. (Anadolu)