“Based on the most recent data, we estimate that the Treasury will have insufficient resources to meet government obligations if Congress fails to raise the debt ceiling by June 5th‘ wrote the US Treasury Secretary Janet Yellen in a letter to House Speaker Kevin McCarthy.
In the letter, Yellen recalled that payments will be sent for the first two days of June 130 billion dollars to the veterans and to people enrolled in the programmes Social Security And Medicare. A measure, the former Federal Reserve governor has warned, that she will leave the Treasury in one position”extremely precarious” regarding the availability of resources. Yellen thus invited all interested parties to negotiate “in good faith” to obtain as soon as possible a compromise agreement that will avoid default.
The US Treasury Secretary therefore extended the deadline for raising the federal debt limit. Yellen said the government could default on June 5 without raising the country’s debt ceiling by 31.4 trillion dollars. Previously, Yellen had put that date as early June, potentially as early as June 1.
US Congress Capitol Hill
