Yellen Warns Treasury to Run Out of Funds June 5
Urges Debt Deal ‘As Soon As Possible’
Treasury Secretary Janet Yellen announced Friday the government could breach its debt limit on June 5 if the White House and Congress do not come to an agreement to raise or suspend it by then.
Yellen, who warned last week that the date was “highly likely” to hit in early June and as early as June 1, nailed down the specific deadline as tense negotiations in Washington remain ongoing.
“Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5,” Yellen wrote to House Speaker Kevin McCarthy (R-CA).
McCarthy and President Joe Biden and their surrogate negotiators have been locked in talks for days as the so-called X-date looms.
House Republicans passed a package in April to raise the debt ceiling through early next year in exchange for deep spending cuts and other concessions, and McCarthy has continued to demand aspects of that package while he works to come to an agreement with Biden and the Democrat-controlled Senate.
Republicans deeply involved in the discussions, including Reps. Patrick McHenry (R-NC) and Garret Graves (R-LA), ventured in and out of McCarthy’s office well into Friday evening of Memorial Day weekend when most other members had already left for recess.
Rep. Patrick McHenry speaks with reporters on the status of ongoing debt ceiling negotiations before entering Speaker Kevin McCarthy’s office, May 26, 2023. (Breitbart News)
McHenry, the Financial Services Committee chairman, told reporters Friday night as he headed into the speaker’s office there were “significant challenges ahead” and that he did not know if that meant a deal would come in “hours or days.”
Biden and Senate Majority Leader Chuck Schumer (D-NY) had for months refused to settle for any terms other than passing a “clean” debt ceiling hike, that is, an increase to the limit with none of Republicans’ desired conditions.
Once the House GOP demonstrated that even with its narrow majority the conference was able to unite around a plan, Biden was forced to begin talks with McCarthy on spending reductions despite the president saying for months that he would not budge on the matter.
Amid growing pressure now for the pair to come to a resolution, McCarthy has vowed, per House rules, to give colleagues three days to review the debt package if and when it is finalized.
Header featured image (edited) credit: Yellen/Jacquelyn Martin/AP
Emphasis added by (TLB) editors
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