The United States is unlikely to run out of money until June 5 if there is no political agreement on an increase in the US government’s debt ceiling. 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 a little more time to reach a deal. Earlier, Yellen said that the government may not have enough money to pay all the bills by June 1.
A deal between the 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 unrest worldwide. A large part of the US government may also come to a standstill.
Yellen said in a letter to Congress on Friday that she looked at the most current financial figures. As a result, her ministry can still make more than $130 billion in scheduled payments in the first two days of June. This includes social benefits.
Raising debt ceiling usually routine job
Payments totaling $92 billion are scheduled for the week of June 5. According to Yellen, without raising the ceiling, it will not be possible to cough up all that money.
The country has then borrowed the maximum amount that Congress allows. This setting will then have to raise the bar a bit. This is usually a routine job in the US, but tensions between Republicans and Democrats make it increasingly difficult. Meanwhile, there seems to be progress in the talks between the two parties. But according to the latest reports on the negotiations, they still differ on some important points.