If Congress does not address the debt ceiling by June 5, the US Treasury Department will not have enough funds to pay all of the nation’s obligations in full and on time, Treasury Secretary Janet Yellen said today.

“Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5,” she wrote in a letter to House Speaker Kevin McCarthy and other congressional leaders.

The latest missive comes as President Biden and House Republicans continue to try to hammer out a deal to address the debt ceiling before the US defaults on its obligations, which would wreak havoc on the global economy and financial system.

Negotiators are moving closer to an agreement, but several sticking points remain, including the size of spending cuts and broadening of work requirements in safety net programs.

Last edited by Spunky (5/26/2023 7:11 pm)