The US Treasury has only $88 billion to operate within the debt ceiling

The US Treasury has only $88 billion to operate within the debt ceiling

Conversations continue in search of an agreement to avoid a payment default. In the coming weeks you will need to indicate when you would run out of funds.

He United States Department of the Treasury has only US$88 billion to allocate to extraordinary measures to help the government pay its bills and continue to operate without exceed the debt ceiling. This was stated by the Treasury Department headed by Janet Yellen.

The Treasury data emerges in an ANSA report as backstage talks continue at the seeking an agreement to avoid a payment default of the government of Joe Biden.

United States Secretary of the TreasuryJanet Yellen, said on Saturday that Standoff over raising US debt ceiling ‘more difficult’ than in the past, but added that he remains hopeful of finding a solution to avoid the country’s first default. Yellen told Reuters in an interview on the sidelines of a meeting of finance officials from the Group of Seven (G7) in Japan that he hoped to bring the United States Congress up to date in the next two weeks about cWhen exactly would the Treasury run out of funds? to pay government bills.

Janet Yellen USA.jpg

The US Treasury chief has repeatedly called on Congress to agree to raise the $31.4 trillion limit on federal borrowing to avoid the “economic and financial catastrophe” that would occur if the United States defaults on its debts. British Chancellor of the Exchequer, Jeremy Hunt, told the press that the situation posed a “very serious” threat for the world economy. “It would be absolutely devastating if the United States saw its GDP derailed by not reaching an agreement,” Hunt declared on the sidelines of the G7 meetings.

Yellen said that his estimate last week that the Treasury might not be able to meet its payment obligations already on June 1 was consistent with Friday’s report from the Congressional Budget Office, which warned of a “significant risk” of default in the first two weeks of June.

the democrat president Joe Biden insists that Congress has a constitutional duty to raise the limit without conditions to finance previously approved spending. The Republicans, who control the House of Representatives, wante Biden accepts sweeping budget cuts to secure his deal.

Unlike most developed countriesUnited States establishes a maximum debt limit. Since the government spends more than it earns, lawmakers must periodically raise that cap.

Source: Ambito

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