The United States Secretary of the Treasury, Janet Yellensaid that now it isvery likely” that his department will run out of sufficient cash in early June, reiterating his warning that this could happen as late as June 1.
“I am writing to note that we estimate that it is very likely that the Treasury will no longer be able to meet all of the Government’s obligations if Congress has not taken action to raise or suspend the debt limit by early June, and possibly even June 1.“, said Yellen Monday in a letter to lawmakers.
The US Department of the Treasury thus confirms that the United States could default on its obligations on June 1 if the debt ceiling is not raised.
The Treasury reiterated that it expects to be able to pay US government bills only until June 1 without a borrowing limit increase, leaving just 10 days for Republican negotiators in Congress and the White House to reach an agreement. .
In her third letter to Congress in three weeks, Treasury Secretary Janet Yellen said it was “highly probable” that the agency cannot meet all the payment obligations of the US Government at the beginning of June, which would trigger the first cessation of payments by the United States.
The debt ceiling could become binding on June 1, he said.
Yellen’s letter reflects more data on revenues and payments received since she told Congress on May 15 that the Treasury would likely run out of cash to pay government bills by early June, and even as early as June 1. .
With information from Bloomberg and Reuters
Source: Gestion
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