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Sam Harris
May 27, 2023 4:44PM ET
Markets will be down Tuesday.
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Treasury could run out of money by June 5 without debt-ceiling deal: Yellen
Published May 26, 2023 04:45PM ET
© Reuters
Investing.com -- U.S. Treasury Secretary Janet Yellen warned Friday that the U.S. will run out of cash by June 5, should the government fail to raise the debt limit.
"Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5," Yellen said in a letter on Friday to House Speaker Kevin McCarthy.
Yellen previously touted June 1, or early June, as the so-called X-date, or the day the U.S. won’t be able to pay its bills.
The warning comes just a week before the U.S. Treasury is set to make more than $130 billion of scheduled payments in the first two days of June. The Treasury is also scheduled to make an estimated $92B of payments and transfers during the week of June 5, Yellen said, adding that its projected resources would be "inadequate to satisfy all of these obligations."
Republican and White House negotiators have made strides on Friday toward reaching a debt-ceiling agreement that reportedly would seek to raise the debt limit and cap federal spending for two years through 2024.
Should a deal be announced by late Friday or on Saturday (May 27), Goldman Sachs said it believes this would "likely allow a House vote late Tuesday (May 30) or Wednesday (May 31).”
The countdown to a deal is being closely watched as the latest data showed the U.S. Treasury had about $38.8B in cash on Thursday that it uses to pay its bills, compared with an average balance of about $500B on hand.
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Comments (17)
Rajkumar Velupillai
May 27, 2023 8:48AM ET
Continue to kick the can down the street and live on free money 🤑 💰
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The Man
May 27, 2023 4:29AM ET
This is a dude with a white salad bowl on his head.
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Jacky Lee
May 26, 2023 10:51PM ET
Movable X date
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Mark Jannetty
May 26, 2023 10:51PM ET
Democrats can't add
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Atmosphere Mind
May 26, 2023 8:58PM ET
Fail then. *ghost
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Jay Garrelts
May 26, 2023 7:27PM ET
Run out of money Trump and Biden doubled the nation’s money supply lol
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Michael Benson
May 26, 2023 7:24PM ET
Commodities play a significant role in the global economy.
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Gonzalo Ribeiro
May 26, 2023 6:50PM ET
Does anyone actually believe a default is coming?
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Robert Cox
May 26, 2023 6:50PM ET
I'd say about 65/35 in favor. It's brinksmanship and whoever blinks, loses. And then, that side has to convince their party to agree.
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Hihi Police
May 26, 2023 6:23PM ET
so all of a sudden it's June 5th
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Atmosphere Mind
May 26, 2023 6:23PM ET
xD
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Andy Sharma
May 26, 2023 6:23PM ET
I think US deserve to be filing default. Default is going to happen either you delay it or file now. Doesnt really matter.
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