The U.S. Could Hit the Debt Ceiling by June 1, Much Sooner than Expected, Yellen Warns
The U.S. Could Hit the Debt Ceiling by June 1, Much Sooner than Expected, Yellen Warns
Treasury Secretary Janet Yellen warns the US may default on its debt obligations as early as June 1 due to a drop in tax receipts, putting pressure on Congress to raise the debt ceiling.
US Treasury Secretary Janet Yellen has warned that the US could hit its debt ceiling as soon as June 1st, earlier than previously estimated, due to a drop in tax receipts, which could leave the country unable to pay its debt obligations. The earlier estimate has prompted President Biden to invite the “big four” congressional leaders to discuss the debt limit on May 9th at the White House. Goldman Sachs had previously estimated the deadline to be sometime in late July, but weaker-than-expected tax receipts could move that timeline up. The Congressional Budget Office also revised its estimate for the X-date on Monday, indicating that there is a greater risk that the Treasury will run out of funds in early June. This could impact any effort to hammer out a last-minute deal on a debt ceiling hike, as there are only eight legislative days this month when both the House and Senate will be in session. The House GOP caucus has demanded sweeping cuts to federal spending in exchange for voting to avoid a debt default. For more information click the link!
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