An interesting thing happened on the way to a potential default on the US debt.
Treasury Secretary Janet Yellen confirmed in a letter to House Speaker Kevin McCarthy that the federal government would be unable to pay its bills as of June 5 if the debt limit is not raised or suspended.
“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,” Yellen wrote to leaders.
Yellen had previously estimated June 1 would be the X-date.
Meanwhile, as she made the announcement, the Daily Treasury Statement provided the latest update to the department’s cash balance.
The Treasury General Account closing balance for May 25 was $38.837 billion, down from $316 billion at the beginning of the month.
If the Treasury’s bank account at the Federal Reserve is running low on funds, why would the debt ceiling deadline be pushed back by a few days?
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