Yellen said it was difficult to pinpoint exactly what day the US government would run out of funds, but explained that she would try to increase the level of accuracy by a date.
US Treasury Secretary Janet Yellen on Wednesday maintained early June as the deadline for raising the US debt ceiling and said she would update the on government finances.
Yellen said it is difficult to pinpoint exactly what day the US government will run out of funds, but explained that she will try to increase the level of accuracy on a date.
The US Treasury Department reiterated on Monday that it expects to be able to pay US government bills only by June 1 if there is no increase in the debt limit, leaving little more than a week for White House negotiators and Republicans. of Congress to reach an agreement.
Speaking at a Wall Street Journal forum, Yellen said the Treasury and US President Joe Biden would face difficult choices if Congress does not act to raise the debt ceiling.
“There will be some obligations that we will not be able to pay,” she said.
The Treasury secretary stated that prioritizing payments is not operationally viable for the government. “We simply have to raise the debt ceiling,” she said.
There is some stress in financial markets over the debt ceiling, with some Treasuries maturing in early to mid-June trading at higher interest rates, Yellen added.
