Treasury Secretary Janet Yellen said Wednesday that early June was still the deadline to resolve the debt ceiling issue. She added that she would soon provide Congress with an update on the state of public finances.
Yellen said it’s hard to pinpoint exactly what day the government will run out of resources, but she will try to be more specific.
Recall that on Monday the Treasury Department reiterated that without raising the debt ceiling, the government will only be able to pay bills until June 1, implying that White House negotiators and Republicans in Congress have a little more than a week to reach an agreement.
Speaking at the Wall Street Journal forum, Yellen said the Treasury and President Joe Biden would face a stark choice if Congress did not decide to raise the debt ceiling.
“There will be certain obligations that we cannot pay,” she said.
The Minister of Finance has stated that the tiering of payments is not operationally feasible for the government.
“We just need to raise the debt ceiling,” she said.
There is clear uncertainty in financial markets around the debt ceiling, and some notes maturing in early to mid-June are trading at higher interest rates, Yellen added.
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