- Treasury Secretary Janet Yellen says that the United States debt ceiling deadline is pushed back to June 5
- The official made her remarks in a letter sent to Republican House Speaker Kevin McCarthy
- The announcement was made based on the move recent data available and as negotiators inch closer to a deal
United States Treasury Secretary Janet Yellen pushes back the debt ceiling deadline to June 5 based on the latest data available as negotiators are inching closer to finalizing a deal.
In a letter, Yellen said that the Treasury Department now estimates that the United States will run out of funds to pay its bills by June 5. Her remarks were made in a document she sent to Republican House Speaker Kevin McCarthy.
Treasury Pushes Back Debt Ceiling Deadline
The Treasury secretary's new estimate was more specific than her previous guidance. In her previous two letters sent to Congress, she suggested a little more uncertainty regarding the situation, saying, "as early as June 1," as per CBS News.
Despite the latest warning, the exact timing of when the United States government will be unable to pay its bills has a certain degree of uncertainty. This comes despite the Treasury Department tracking funds entering and leaving its coffers.
In her letter, Yellen said the country could make more than $130 billion of scheduled payments in the first two days of June. This would include payments to veterans and Social Security and Medicare recipients. These will then leave the Treasury with what she called an "extremely low level of resources."
The Treasury secretary added that the department is set to make an estimated $92 billion in payments and transfers in the week of June 5. Yellen added that the American government would need more resources to satisfy its obligations by that time.
Yellen added that she has highlighted to McCarthy the risk that the Treasury would only be able to satisfy some of its obligations by early June. According to Fox Business, she noted that she had done so since January and said she would continue to update Congress about the situation as more data becomes available.
Running Out of Funds
The secretary argued that she was forced to fall back to an extraordinary measure that has yet to be invoked since 2015 just so that she could ensure that the American government has enough funds to operate. She detailed a series of payments that Washington wants to make on time in the week of June 5.
With Yellen's Friday warning, Congress and the White House now have a little more time to reach a deal, but negotiators are still not on the same page. Rep. Garret Graves said that he had already spoken with one of President Joe Biden's appointed negotiators, Office of Management and Budget Director Shalanda Young.
The Democratic president chipped in and is hopeful that a deal regarding the debt ceiling would be reached by negotiators later this evening. Before leaving Washington, Biden said they were negotiating the situation to look for a solution, said CNN.
