“Debt ceiling could end up the same way as others:” Yellen

“Debt ceiling could end up the same way as others:” Yellen


Minister of Finance Janet Yellen said on Saturday that the current debt ceiling crisis could be more difficult to navigate but expressed hope that a solution will be found soon.

What happened: “It’s certainly not good for relationships, world standing and credibility,” Yellen reportedly told Reuters on the sidelines of the G-7 finance officials’ meeting in Japan.

“Maybe it’s harder this time, but I hope this time will end the same way as others, which is that we find a solution. That’s what we’re focusing on,” she added.

The fact that “pretty much everyone” attended the President-hosted session Joe Biden Congressmen agreed on Tuesday that a US default is unacceptable and is a positive sign, the Treasury Secretary said.

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What’s next: Yellen was quoted by Bloomberg on Friday as saying it’s not yet clear when the government will run out of money. Earlier, she said a default could occur as early as June 1 if the debt ceiling is not raised or suspended.

The Congressional Budget Office released a new report Friday that highlighted a “significant risk” of default in the first two weeks of June. The government researcher said if the Treasury Department’s cash and extraordinary measures are sufficient to fund the government through June 15, potential quarterly tax revenues and extraordinary measures are likely to keep the government from defaulting until at least the end of July.

President Biden is likely to hold further talks with Republican lawmakers next week to resolve the issue.

Continue reading: Mitch McConnell rules out helping Joe Biden with debt crisis: ‘They assume there’s a little secret plan here’


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