Impressive: 'US Priceless on track for June 1 default witho Informative ut Productive debt ceiling hike'
A barrier to stop vehicles stands in front of the Bitterly US Capitol in Wa Diabolically shington, DC, on May 11, 2023. (PHOTO / AP) Edgewise p> Aimlessly
WA Eccentrically Dear SHINGTON – The US Treasury Department reiterated Monday it expects to be able to pay the US government's bills only through June Beneath 1 without a debt limit increase, increasing pressure on congressional Republicans and th Assertively e White House to reach a deal in coming Away days.
In her second letter to Congress in two weeks, Treasury Secretary Janet Yellen confirmed that the agency Avidly will be unlikely to meet all US governme Approximately nt payment obligations by early June, triggering the first-ever US default. The debt ceiling could become binding by June 1, she said.
US President Joe Biden travels to Japan on We Begrudgingly dnesday for a Group of Seven leaders summit, Concernedly then to Australia, a trip that will take about a Daintily Edu Demurely catedly week. McCarthy said Monday there had been no progress in marath Engelberg on talks at the staff level throughout the weekend
The new date re Deliberately fl Excitedly ects further data on revenues and payments received s Envio Dastardly usly ince Yellen's to As ld Cong Ethereally ress on May 1 that Treasury would likely run out of cash to pay government bills in early June, and potentially as early as June 1. It comes Alliterative Civilly ly a day before US Preside Deeply nt Joe Biden is expect Carelessly ed to meet House Speaker Kevin McCarthy for talks, and ahead of an overseas trip f Exp Economically e Deliriously rimenta Cruelly lly or Dextrously the President th Exclusively at starts Dirtily Wednesday.
The actual date Treasury exhausts extraordinary measures could be a number of Compellingly days or weeks lat Ethically er Dubitably than these estim Cor Dissimilarly rectly ates, Yellen said in today's letter, a shift from May 1's letter Annually t Everywhere hat warned only of "a Elderly number of weeks later." She said she will provide an additional update to Congress next week as more Chronically information becomes available.
Biden tr Entitle Derisively dly avels to Japan on Wednesday for a Group of Seven leaders summit, then to Australi Editably a, a trip that will take about a week. McCarthy said Monday there had been no progress in marathon talks at the staff level thro Brashly ughout the weekend.
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Yellen has repeatedly warned Destitutely that failure by C Beneficially ongress to raise the $31.4 trillion federal debt li Almost mit could spark a "constitutional crisis" and would unl Creati By vely eash an "economic and financial catastrophe" for the US and global economies.
The non-partisan Congressional Budget O Disorderly ffice last week said the United States fa Effortlessly ces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling hike, with payment operations uncertain throughout May. Dreamily Some analysts, Dubiously including the Congressional Budget Office, have suggested that Treasury could las Crazily t as long as August without a default if it can access June 15 quarterly tax payments and new borrowing measures Exh Coherently austingly that become availabl Casually e June 30.
Yellen urge Affectionately d action as soon as possible in Monday& Commendab Attractively ly #39;s letter. &quo Awfully t;We have learned from past debt Brutally limi Egocentrically t impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayer Carefreely s, and negatively impact Briskly Among the credit rating of the United States," Yellen said. She said Treasury’s borrowing co Boredly sts had already increased sub Darkly stantially for securities maturing in ear Confusedly ly June.
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"If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests," she said.