https://sputnikglobe.com/20230501/us-may-hit-debt-limit-as-early-as-june-1-if-congress-fails-to-act-yellen-warns-1110016104.html
US May Hit Debt Limit 'as Early as June 1' if Congress Fails to Act, Yellen Warns
US May Hit Debt Limit 'as Early as June 1' if Congress Fails to Act, Yellen Warns
Sputnik International
US Treasury Secretary Janet Yellen warned Monday that the US may run out of options to pay its debt obligations "as early as June 1" if congressional lawmakers fail to act and raise the debt limit.
2023-05-01T21:30+0000
2023-05-01T21:30+0000
2023-05-02T16:37+0000
economy
us
janet yellen
debt ceiling
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economic crisis
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us debt ceiling crisis
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US Treasury Secretary Janet Yellen warned Monday that the US may run out of options to pay its debt obligations "as early as June 1" if congressional lawmakers fail to act and raise the debt limit.“After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," Yellen wrote in a Monday letter to Congress.The Monday notice issued by Yellen to both House and Senate leadership explains the latest forecast is based on "currently available data." However, it also highlights that "federal receipts and outlays are inherently variable, and the actual date that Treasury exhausts extraordinary measures could be a number of weeks as more information becomes available.""Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payment," Yellen urged.The new timeline offered by the Treasury secretary effectively gives Congress a narrower window than it had been previously given, which at the time outlined a June 5 as the deadline. However, as Yellen noted, it's more than likely that the latest timeframe will be updated in the coming weeks.To date, the US has been using so-called 'extraordinary measures' to foot its bills since January, when it reached its statutory borrowing limit.Yellen's warning comes as the US House of Representatives passed debt ceiling legislation on April 26, although the Republican bill has little chance of clearing the US Senate. US President Joe Biden earlier stated he would use his veto powers against the bill.The legislation intends to raise the debt ceiling by roughly $1.5 trillion or through the end of March 2024 in favor of cutting federal spending by an estimated $4.8 trillion. It would roll back the Biden White House's student loan forgiveness initiatives, clean energy agenda and implement a 1% growth cap for the next 10 years.Senate Majority Leader Chuck Schumer has stated the Senate chamber will hold hearings on the Republican-led legislation, but that they would be conducted in order to "expose the true impact of this reckless legislation on everyday Americans." Hearings are expected to start on Thursday.As Democrats have more than suggested the bill is dead on arrival, Republican leadership has indicated the measure is intended to serve as a starting proposal. Over the last several administrations, the debt ceiling has repeatedly been used as a negotiating tactic among US lawmakers.
https://sputnikglobe.com/20230119/yellen-notifies-congress-that-us-treasury-has-begun-using-extraordinary-measures-to-fund-govt-1106497828.html
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debt ceiling, us default, debt crisis, financial limbo, us congress, biden administration, treasury secretary janet yellen, extraordinary measures
debt ceiling, us default, debt crisis, financial limbo, us congress, biden administration, treasury secretary janet yellen, extraordinary measures
US May Hit Debt Limit 'as Early as June 1' if Congress Fails to Act, Yellen Warns
21:30 GMT 01.05.2023 (Updated: 16:37 GMT 02.05.2023) The US reached its statutory borrowing limit in January and has since been operating "extraordinary measures" to avoid a US default and buy the Biden administration and US Congress time to raise the debt ceiling.
US Treasury Secretary Janet Yellen warned Monday that the US may run out of options to pay its debt obligations "as early as June 1" if congressional lawmakers fail to act and raise the debt limit.
“After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," Yellen wrote in a Monday letter to Congress.
The Monday notice issued by Yellen to both House and Senate leadership explains the latest forecast is based on "currently available data."
However, it also highlights that "federal receipts and outlays are inherently variable, and the actual date that Treasury exhausts extraordinary measures could be a number of weeks as more information becomes available."
"Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payment," Yellen urged.
"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 national security interests."
The new timeline offered by the Treasury secretary effectively gives Congress a narrower window than it had been previously given, which at the time outlined a June 5 as the deadline. However, as Yellen noted, it's more than likely that the latest timeframe will be updated in the coming weeks.
Shortly after news of Yellen's Monday letter surfaced, insiders reported that the White House called on congressional leadership with the intention of arranging a meeting to discuss the debt ceiling and budget issues.
It's reported the White House meeting may be held on May 9.
To date, the US has been using so-called 'extraordinary measures' to foot its bills since January, when it reached its statutory borrowing limit.
19 January 2023, 15:10 GMT
Yellen's warning comes as the US House of Representatives
passed debt ceiling legislation on April 26, although the Republican bill has little chance of clearing the US Senate. US President Joe Biden earlier stated he would use his veto powers against the bill.
The legislation intends to raise the debt ceiling by roughly $1.5 trillion or through the end of March 2024 in favor of cutting federal spending by an estimated $4.8 trillion. It would roll back the Biden White House's student loan forgiveness initiatives, clean energy agenda and implement a 1% growth cap for the next 10 years.
Senate Majority Leader Chuck Schumer has stated the Senate chamber will hold hearings on the Republican-led legislation, but that they would be conducted in order to "expose the true impact of this reckless legislation on everyday Americans." Hearings are expected to start on Thursday.
As Democrats have more than suggested the bill is dead on arrival, Republican leadership has indicated the measure is intended to serve as a starting proposal. Over the last several administrations, the debt ceiling has repeatedly been used as a negotiating tactic among US lawmakers.
