Yellen Sets June 5 Deadline to Avoid Debt Default as Negotiations Continue
Summary from the AllSides News Team
Treasury Secretary Janet Yellen revised previously estimated dates for when the United States would default on its debts, setting a hard deadline of June 5 for the White House and Congress to reach a deal to raise or suspend the debt ceiling to avoid a default.
Details: In a letter sent to congressional leaders, Yellen stated, “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 added that in the first two days of June, $130 billion in payments, including payments to “veterans and Social Security and Medicare recipients,” will leave the Treasury with an “extremely low level of resources.” With an expected payment amount totaling $92 billion due in the week of June 5, Yellen warned the Treasury’s resources would be “inadequate to satisfy all of these obligations.” Yellen again warned of the “severe hardship” on American families and the nation's global standing should the payments be missed, urging congressional leaders to act to “protect the full faith and credit of the United States.”
How The Media Covered It: Fox Business reported that negotiations between the White House and House Republicans “were still far apart,” despite Axios and The Hill citing Republican leaders expressing “progress” in talks. The Hill reported on the debt ceiling standoff’s impact on financial markets and noted that Yellen’s letter “notably came after stocks closed on the up Friday.”
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From the Center
Yellen says US will run out of money by June 5 if debt ceiling not raisedTreasury Secretary Janet Yellen on Friday notified lawmakers the nation will run out of money to pay its bills by June 5 if they do not raise the debt ceiling.
“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 leaders.
The update may offer negotiators who were working with an estimated June 1 “X-date” more breathing room to clinch a deal to...
From the Right
Yellen estimates government will run out of cash by June 5 without debt ceiling agreementTreasury Secretary Janet Yellen told Congress Friday that the U.S. government is now expected to run out of cash to pay its current obligations by June 5, updating her previous estimate that said the day could come as early as June 1.
"Since January, I have highlighted to you the risk that Treasury would be unable to satisfy all of our obligations by early June if Congress did not raise or suspend the debt limit before that time. In my letters, I also noted that I would continue to update Congress...
From the Left
Yellen warns U.S. will run out of money on June 5Treasury Secretary Janet Yellen has given Congress a more precise date — June 5 — for when the U.S. government will hit the debt ceiling and run out of money to pay its bills.
Why it matters: Yellen's previous warnings estimated the U.S. would hit the so-called X-date as early as June 1, but her latest letter provides a firmer deadline as lawmakers and the White House work to avoid a damaging debt default.
What they're saying: "Based on the most recent available data, we now estimate that Treasury will...
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