US to run out of cash next month: Treasury Secretary Janet Yellen
03 May 2023 11:35:18
Washington D.C., May 03: US President Joe Biden on Monday summoned the four top congressional leaders to the White House next week after the Treasury warned the government could run short of cash to pay its bills by June.
Treasury Secretary Janet Yellen said in a letter to Congress that the agency will be unlikely to meet all US government payment obligations "potentially as early as June 1" without action by Congress.
🇺🇲US could default by next month – Treasury
— Velerie (@Daark_web) May 2, 2023
The nation officially hit its $31.4 trillion debt ceiling in January
🚫US Treasury Secretary Janet Yellen warned that the federal government could run short of cash to pay its bills as soon as next month without a debt limit increase. pic.twitter.com/QoU3I1Tzou
The estimate raised the risk that the United States is headed for an unprecedented default that would shake the global economy, adding new urgency to political calculations in Washington, where Democrats and Republicans were girding for a months-long standoff. Biden called Republican House Speaker Kevin McCarthy in Jerusalem, where he is on a diplomatic trip, to invite him to a May 9 White House meeting. The two leaders haven't sat down to discuss the issue since February.
Biden also extended invitations to House Democratic leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer, and Republican leader Mitch McConnell. McConnell, whose fall in March sidelined him for weeks, said he and Biden had a "good conversation" today, adding: "I'm sure we'll be speaking again."