That gives Republicans and Democrats in Congress a bit more time to come to an agreement. Earlier, Yellen said the government might not have enough money to pay all the bills by June 1.
An agreement between Democrats and Republicans on the necessary increase in the debt ceiling is still pending. Republican Speaker of the House of Representatives Kevin McCarthy said he would continue to work over the coming long weekend to reach a deal. Failure to reach an agreement in time could cause major financial turmoil around the world. Much of the US government could also come to a standstill.
Yellen said in a letter to Congress on Friday that she had reviewed the most recent financial numbers. It follows that his ministry can still make more than 130 billion dollars (more than 121 billion euros) of scheduled payments in the first two days of June. This includes benefits. For the week of June 5, payments totaling 92 billion dollars (nearly 86 billion euros) are planned. According to Yellen, without raising the ceiling, it will not be possible to cough up all that necessary money.
Then the country borrowed the maximum amount allowed by Congress, after which this institution must raise the bar again. It’s usually routine work in the United States, but tensions between Republicans and Democrats make it an increasingly difficult story. Meanwhile, there appears to be progress in the talks between the two sides. But according to the latest reports on the negotiations, they still diverge on some important points.
US President Joe Biden said on Friday he hoped for a quick breakthrough. “We are very close and I am optimistic,” he said.
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