U.S. Could Run Out of Cash by June 1, Yellen Warns
WASHINGTON — Treasury Secretary Janet L. Yellen said on Monday that the United States could run out of money to pay its bills by June 1 if Congress does not raise or suspend the debt limit, putting pressure on President Biden and lawmakers to reach an agreement to avoid a default.
The warning over when the United States could hit the so-called X-date provides new urgency for Democrats and Republicans to find a way to lift the nation’s borrowing cap and break a standoff that threatens to rock financial markets and upend the economy.
“Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments,” Ms. Yellen said.
House Republicans passed legislation in April that would raise the debt limit in exchange for deep spending cuts and roll back recent legislation that Democrats passed along party lines. Mr. Biden has blasted that bill, saying it would hurt working families while benefiting the oil and gas industry, and he has accused Republicans of putting America’s economy on the line.
Source: The New York Times
