- Analytics
- News and Tools
- Market News
- US Treasury Secretary Yellen: June 1 remains a “hard deadline” for raising the Federal debt limit
US Treasury Secretary Yellen: June 1 remains a “hard deadline” for raising the Federal debt limit
“US Treasury Secretary Janet Yellen on Sunday said June 1 remains a "hard deadline" for raising the federal debt limit, with the odds quite low that the government will collect enough revenue to bridge to June 15, when more tax receipts are due,” reported Reuters.
It’s worth noting that US Treasury Secretary Yellen spoke on NBC's "Meet the Press" program during the weekend while delivering the aforementioned comments.
Key quotes
There would be hard choices to make about payments to Americans if Congress failed to raise the $31.4 trillion debt ceiling before Treasury ran out of cash and was forced to default.
I indicated in my last letter to Congress that we expect to be unable to pay all of our bills in early June and possibly as soon as June 1.
And I will continue to update Congress, but I certainly haven't changed my assessment.
So I think that that's a hard deadline.
There's always uncertainty about tax receipts and spending, and so it's hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15 while being able to pay all of our bills is quite low.
Invoking the amendment "doesn't seem like something that could be appropriately used in these circumstances, given the legal uncertainty around it, and given the tight time frame we're on.
Market implications
The news seems to have weighed on the market’s risk appetite, especially after US policymakers failed to offer any positive news during their weekend talks about stretching the debt ceiling. However, the US Dollar struggles to cheer the sour sentiment amid recent challenges to the hawkish Fed bets, especially after Chairman Jerome Powell’s mixed comments.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
