The head of the US Treasury admitted that in early June the agency will run out of cash
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US Treasury Secretary Janet Yellen called it “highly likely” that her department would run out of cash next month. According to her, this could happen as early as June 1.
“Our estimate is that it is highly likely that the Treasury will no longer be able to meet all government obligations unless Congress takes action to raise or suspend the debt limit by early June,” Ms. Yellen wrote to lawmakers (quoted from Bloomberg).
The treasury secretary clarified that the timeline she cited is based on data currently available and she “will continue to update Congress as more information becomes available.” Jeanette Yellen once again warned that a default would cause serious damage to the financial markets and the US economy.
She issued her warning amid debate over the possibility of raising the debt ceiling. US White House May 21 declared about a “big step back” in the negotiations on this topic. The Joe Biden administration accused the Republican leadership of threatening default. Many Republicans (the party controls the House of Representatives) are reluctant to agree to a ceiling increase without budgetary reforms.
On the development of the situation – in the material “Kommersant” “Default is not as bad as it is painted”.
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