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Unless there is political agreement on raising the US government’s debt ceiling, the US is unlikely to run out of money until June 5. Treasury Secretary Janet Yellen made that assessment on Friday. June 5 is later than previously predicted.
Yellen’s message gives Republicans and Democrats in Congress some more time to reach a deal. Earlier, Yellen said the government would not have enough money to pay all the bills by June 1.
A deal between Democrats and Republicans on a necessary increase in the debt ceiling is still pending. House Republican Speaker Kevin McCarthy said he would continue working through the coming long weekend to reach a deal.
Failure to reach an agreement in time could lead to major financial unrest worldwide. A large part of the US government could also come to a standstill.
Yellen said in a letter to Congress on Friday that she had looked at the current fiscal figures. As a result, his ministry could still make more than $130 billion in scheduled payments in the first two days of June. This includes social benefits.
Raising the debt ceiling is usually routine work
A total of $92 billion in payments are scheduled for the week of June 5. According to Yellen, she can’t cough up all that money without raising the ceiling.
The country then borrowed the maximum amount allowed by Congress. This setting should raise the bar quite a bit. This is usually a routine job in America, but tensions between Republicans and Democrats make it more difficult. Meanwhile, it seems that progress has been made in the talks between the two sides. But according to recent reports on the talks, they still differ on some important points.
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