US has until at least June 5 to strike debt ceiling deal before defaulting
https://sputnikglobe.com/20230526/yellen-us-has-until-at-least-5-juin-to-hammer-debt-ceiling-deal-before-defaulting-1110618245.html
Yellen: US has until at least June 5 to strike debt ceiling deal before defaulting
Yellen: US has until at least June 5 to strike debt ceiling deal before defaulting
U.S. Treasury Secretary Janet Yellen revealed on Friday that lawmakers have until at least June 5 to strike a debt ceiling deal before the federal agency runs out of funds and starts running out. to its financial obligations.
2023-05-26T20:35+0000
2023-05-26T20:35+0000
2023-05-26T20:52+0000
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U.S. Treasury Secretary Janet Yellen revealed on Friday that lawmakers have just over a week to strike a debt ceiling deal before the federal agency runs out of funds and begins to run out. to its financial obligations. upcoming payments and the Treasury has already used some of its last remaining ‘extraordinary measures’ to find funds to pay these bills.”[O]Our planned resources would be insufficient to meet all of these obligations,” she said. “If Congress fails to raise the debt ceiling, it would cause severe hardship for American families, hurt our leadership world and would raise questions about our ability to defend our national security interests. I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible,” Yellen said. His warning comes just hours after economists at Goldman Sachs, the world’s second largest bank, announced their conclusion that the federal government only has enough money to pay its bills until June 9. If the debt ceiling is not raised by then and new funds are allocated, the coffers will run dry and the United States will default on its debt. Media reported Friday that Biden and McCarthy were close to reaching a deal, but several key issues remained unresolved, including curtailing plans to hire more Internal Revenue Service (IRS) auditors, l stopping non-military discretionary spending beyond their 2023 levels, and whether or not the deal would raise the debt ceiling for a year or two. despite the dangers, during an Article IV consultation on Friday with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, Yellen “noted the resilience of the US economy in the face of global headwinds .”
https://sputnikglobe.com/20230526/the-final-countdown-goldman-sachs-economists-expect-us-default-by-june-9-1110611592.html
2023
News
en_GB
june 5th, janet yellen, us treasury department, us debt ceiling, us congress
june 5th, janet yellen, us treasury department, us debt ceiling, us congress
U.S. Treasury Secretary Janet Yellen revealed on Friday that lawmakers have just over a week to strike a debt ceiling deal before the federal agency runs out of funds and begins to default. financial obligations.
Yellen explained that the federal government has a number of big payments coming up and that the Treasury has already used some of its last remaining “extraordinary measures” to raise funds to pay those bills.
“[O]Our planned resources would be insufficient to meet all of these obligations,” she said.
“We have learned from past debt limit stalemates that waiting until the last minute to suspend or increase the debt limit can seriously damage business and consumer confidence, increase short-term borrowing costs for taxpayers and negatively impact the credit rating of the United States,” Yellen continued. “In fact, we’ve already seen Treasury borrowing costs rise dramatically for maturing securities. early June.”
“If Congress fails to raise the debt limit, it would cause serious hardship for American families, harm our position as a global leader, and raise questions about our ability to advance our national security interests. I continue to urge Congress to protect the full faith and credit of the United States by acting as soon as possible,” Yellen said.
The Treasury chief previously gave lawmakers a June 1 deadline to strike a deal to lift the debt ceiling.
The debt ceiling was hit in January, but the Republican-controlled House, led by McCarthy, refused to raise the ceiling, sensing an opportunity to force Democrats to accept budget cuts they would otherwise reject. US President Joe Biden has for months refused to sign any bill linking budget cuts to raising the debt ceiling, and McCarthy has also refused to hand him a bill without them.
If the United States defaults on its debt, it is likely to seriously damage its credit rating. As Yellen noted, the U.S. credit rating was downgraded in 2011, despite narrowly avoiding a default, as lawmakers waited hours to agree to a deal.
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