Yellen Sounds Alarm on Default in New Warning to McCarthy on Debt Ceiling Deadlock

Contact Your Elected Officials
The Epoch Times Header

Treasury Secretary Janet Yellen has issued a renewedโ€”and alarmistโ€”warning to House Speaker Kevin McCarthy (R-Calif.) and other congressional leaders, reiterating her earlier position that the country could run out of money to pay its debt obligations as early as June 1, but this time around expressing more confidence in her dire prediction.

Yellen has repeatedly warned that the debt ceiling deadlock grinding on in Washington is pushing the country closer to the so-called X-date, when the Treasury Departmentโ€™s bag of accounting tricks (known as โ€œextraordinary measuresโ€) runs out and the government faces the prospect of a debt default.

In her first letter to McCarthy on May 1 (pdf), Yellen said it was the Treasury Departmentโ€™s โ€œbest estimateโ€ that it would be unable to continue to satisfy all of the governmentโ€™s debt obligations by early June and potentially as early as June 1. She reiterated that view in a May 15 letter, in which she noted itโ€™s impossible to predict the exact timing of the X-date.

But in a new letter (pdf) to McCarthy and congressional leaders on Monday, Yellenโ€™s rhetoric took a more alarmist tone, saying that incoming data show itโ€™s now โ€œhighly likelyโ€ that the government will run out of money as early as June 1.

โ€œWith an additional week of information now available, I am writing to note that we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the governmentโ€™s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1,โ€ Yellen wrote.

Yellenโ€™s increased confidence in her X-date estimate stands in some contrast to aย projection from Goldman Sachs, which expects the country to have a bit more runwayโ€”until June 8โ€”before it runs out of money. Still, the investment bank warned that โ€œwaiting for the last minute isnโ€™t necessarily the right move, even though we think that maybe they could go a little longer.โ€

Byย Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Now Lawyers Are Looking for the Epstein List, Too!

So it turns out that when FBI Director Kash...

Remember Epsteinโ€™s โ€œLittle Black Booksโ€?

Image of Bill Clinton getting a massage from Jeffrey...

On the Major Leagueโ€™s periphery: A major trip through the minors

For Nick Dunn, the trek through the minors is a trifecta of physical, mental, and organizational hurdles filled with politics, roster volatility, and injuries.

Private Citizens are Now Looking into Epstein Client List

Most Americans have never felt so betrayed and confused by a president and his admin as they are by the Trump admin over the Epstein client list issue.

Peace In Ukraine Wonโ€™t End The Westโ€™s Hybrid War On Russia

The Westโ€™s Hybrid War on Russia to follow peace in Ukraine is inevitable due to neoconservatives and liberal-globalists in its decision-making ecosystem.

Hackers Target Appleโ€™s Mac Users With New Malware Hidden in Popular Apps

MacOS malware, ZuRu is targeting Apple users, embedding malicious code and a hacking tool into popular utilities used for remote connections and server management.

Fetterman Backs ICE, Calls Abolition Push โ€˜Outrageousโ€™

Sen. Fetterman voiced support for ICE, calling demands to dismantle the agency โ€œinappropriate and outrageous.โ€

DOJ Shuts Down Investigation on T-Mobile-UScellular Merger

DOJ no longer opposes the merger of T-Mobile and UScellular and has closed its investigation into the matter, the department said in a July 10 statement.

Trump Visits Central Texas, Epicenter of Catastrophic Flood That Killed More Than 120

President Trump landed in Central Texas for first-hand look at damage from devastating flood claiming the lives of more than 120 people statewide.

State Department Says Reorganization Plan to Move Ahead Quickly After Supreme Court Ruling

State Dept to reorganize plans following Supreme Court's allowing Trump admin to proceed with layoffs of fed workers and overhaul of federal agencies.

Trump Says US Has Struck Deal With NATO to Supply Weapons to Ukraine

President Donald Trump said on July 10 that he has struck a new deal with NATO under which the United States will supply weapons to Ukraine

RFK Jr. Bans Illegal Immigrants From Government-Funded Programs

HHS Sec. Robert F. Kennedy Jr. is rescinding a 1998 interpretation of a law that allowed illegal immigrants to access certain government-funded programs.

Rubio Set to Visit Malaysia for ASEAN Meetings Amid Tariff Tensions

A delegation including U.S. Sec. of State Marco Rubio will travel to Kuala Lumpur, Malaysia, for series of high-profile meetings between July 11 and 12.
spot_img

Related Articles