Economy2 hours ago (Jul 23, 2021 01:27PM ET)
© Reuters. Yellen Warns of Default Risk by October Without Debt-Limit Hike
(Bloomberg) — Secretary Janet Yellen said the Treasury Department will begin special steps on July 30 to avoid breaching the U.S. debt limit as a two-year suspension of the ceiling ends, urging lawmakers to act “as soon as possible” to avert a payment default.
There are scenarios in which the Treasury could exhaust its special measures and run out of cash “soon after Congress returns from recess” in September, Yellen said Friday in a letter to lawmakers. She said cash and such measures are expected to decrease by $150 billion on Oct. 1 alone “due to large mandatory payments.”
Yellen’s warning follows a Congressional Budget Office report on Wednesday saying U.S. lawmakers likely have until October or November to raise or suspend the debt limit. She said the Treasury is unable to provide its own specific estimate of how long so-called extraordinary measures would last amid “heightened uncertanty” over payments and receipts during the coronavirus pandemic.
©2021 Bloomberg L.P.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.