Politics & Finances

Yellen Warns U.S. Could Run Out of Funds By June

Yellen Warns U.S. Could Run Out of Funds By June

Treasury Secretary Janet Yellen has warned Congress that the United States could run out of funds by June if immediate action is not taken.

In a letter issued yesterday to bipartisan lawmakers, including House Speaker Kevin McCarthy (R-CA) and Senate Majority Leader Chuck Schumer (D-NY), Yellen stated "we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time."

US_capitol_at_night_2500
Credit: Getty Images

This new assessment differs from Yellen's previous letters. On January 13, for example, she indicated that it was "unlikely" U.S. resources would be exhausted before early June.

Yellen warned that lawmakers should not wait until the last minute to make a move, noting that a delay on Capitol Hill could render “serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers and negatively impact the credit rating” of the United States on the global stage. 

Forbes shared details about recent Congressional developments related to the debt ceiling debate.

Last week, the Republican-controlled House of Representatives approved a measure along party lines that would increase the federal government's existing $31.4 trillion borrowing limit.

GettyImages-1246877500_resized_Biden-Harris
Credit: Jacquelyn Martin-Pool/Getty Images

This bill, however, is not popular among Democrats. President Joe Biden has said he would veto the legislation as it is currently written.

The Senate is slated to hold a hearing on Thursday regarding whether the debt limit should be raised. This comes despite Democrats' disdain for the bill that was passed in the House.

The absence of Senator Dianne Feinstein (D-CA) could impact her party's plans to render the bill dead on arrival, however 89-year-old Feinstein has been recovering from a case of shingles since February.

What do you think? Should the debt ceiling be raised?

You Might Also Enjoy:

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts