The US Treasury will run out of cash needed to fund federal government obligations by June 8 or 9 unless the debt ceiling is raised. This conclusion was made by the experts of the Goldman Sachs bank in their report.
They explained that the Treasury is now implementing “extraordinary measures” as the United States hit its $31.4 trillion debt ceiling in January 2023. The measures include moving funds between certain accounts to pay government bills. However, the Treasury can only use emergency measures as long as the balances in these accounts remain above $30 billion. It will then not be able to fulfill the obligations of the federal government.
Goldman Sachs experts have already informed clients about this.
Revenue could slow more than expected and the Treasury will soon run out of cash
Bloomberg cites an expert note to clients.
Bank experts also pointed out that on May 18, the finance ministry’s cash balance was just over $57 billion after, while the day before it was around $92 billion.
We are confident that Congress will avoid the deadline without action, but it could take many routes.
warn the economists in their report.
They believe that the US administration and Congress will agree this week on a debt ceiling agreement. They estimated this probability at 30%. Experts assigned another 30% to the option in which the transaction takes place “shortly before” the deadline.
Earlier, it was reported that California-based Silicon Valley Bank filed for bankruptcy on March 10. It was the biggest such financial event since the 2008 crisis. At the same time, the bank dragged many legal entities affiliated with it to the financial fund. At the same time, the positions of other financial groups also fell sharply. To some extent, the fight against inflation led to this banking crisis.
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