Unless there is political agreement on raising the US government’s debt ceiling, the US is unlikely to run out of money until June 5. Treasury Secretary Janet Yellen made that assessment on Friday.
That gives Republicans and Democrats in Congress some more time to reach a deal. Earlier, Yellen said the government would not have enough money to pay all the bills by June 1.
A deal between Democrats and Republicans on a necessary increase in the debt ceiling is still pending. House Republican Speaker Kevin McCarthy said he would continue working through the coming long weekend to reach a deal. Failure to reach an agreement in time could lead to major financial unrest worldwide.
Yellen said in a letter to Congress on Friday that she had looked at the current fiscal figures. His ministry could still make more than $130 billion (over 121 billion euros) in scheduled payments in the first two days of June. This includes social benefits. In the week of June 5, a total of 92 billion dollars (almost 86 billion euros) is scheduled to be paid. According to Yellen, it can’t cough up all the money it needs without raising the ceiling.
US President Joe Biden hopes to know for sure on Friday evening whether he can negotiate a budget deal. “We’re very close, I’m confident,” Biden said. “Hopefully we’ll know by tonight if we can reach an agreement.”
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