Yellen Urges Congress to Raise Debt Ceiling Before June 1
Summary from AllSides News Team
Treasury Secretary Janet Yellen sent a letter to Congress warning that the federal government may be unable to pay its outstanding obligations as soon as June 1 if the debt ceiling is not raised.
Key Quotes: “Our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1,” Yellen wrote, urging Congress to “act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments.” Yellen also warned Congress of the potential harm of a drawn-out debt ceiling debate, stating, “We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.”
For Context: Last week, House Republicans passed a bill that would raise the debt ceiling by $1.5 trillion or through March 2024 in exchange for $4.8 trillion in spending cuts. Senate Leader Chuck Schumer (D-NY) said the bill was “dead on arrival.” Democratic leaders are calling for a clean bill raising the debt ceiling without spending cuts.
How The Media Covered It: Outlets across the spectrum covered the warning. Apart from quoting Yellen, the Washington Times quoted only a Republican lawmaker supporting the Republicans plan.
Featured Coverage of this Story
From the RightYellen warns Congress must pass debt limit hike by June 1 or risk default
Treasury Secretary Janet Yellen warned Congress on Monday that the U.S. could be unable to pay its bills as early as June 1 if lawmakers do not raise the federal debt limit.
Ms. Yellen informed House Speaker Kevin McCarthy and other congressional leaders in a letter that incoming tax revenue has been lower than expected, moving up the date by which lawmakers need to act or risk default.
“Our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and...
From the LeftYellen says US could hit debt ceiling as soon as June 1
Treasury Secretary Janet Yellen notified Congress on Monday that the U.S. is projected to reach its debt limit as early as June 1, if the body does not raise or suspend the debt limit before then.
In a letter to House and Senate leaders, Yellen urged Congress “to protect the full faith and credit of the United States by acting as soon as possible” to address the $31.4 trillion limit on its legal borrowing authority.
“We have learned from past debt limit impasses that waiting until the last minute to...
From the CenterYellen says drop-dead date for debt ceiling is June 1
Lawmakers have until June 1 to raise the nation’s debt ceiling, Treasury Secretary Janet Yellen wrote in a letter to congressional leaders on Monday.
Yellen told lawmakers she expects the U.S. to no longer be able to pay all of its outstanding obligations by as early as June 1, ramping up pressure on Congress and the White House to come to an agreement.
Yellen initially told lawmakers it was unlikely the federal government would exhaust the so-called extraordinary measures it has been using to continue paying its bills before early...