Unless U.S. authorities agree on a possible increase in the national debt limit, the U.S. Department of the Treasury (MoF) leadership will run out of cash by June 8 or 9 to meet payments on federal government obligations. In this respect informs The Bloomberg agency cites the forecasts of analysts of Goldman Sachs, one of the largest investment banks.
Economists estimate the chance of reaching a compromise settlement on the public debt this week is 30% (the current limit of $31.4 trillion was exceeded in January 2023). At the same rate, they considered the possibility of making a decision on this issue before the deadline. However, the article notes that the cash balance of the U.S. Treasury is already declining rapidly.
“Treasury will run out of cash by June 8 or 9 to finance federal government obligations unless the debt ceiling is raised.” <….> Revenues may slow more than expected, and the Treasury’s cash will soon run out. Last week, the Treasury’s cash balance increased to just over $57 billion, up from about $92 billion the day before.
21 May reportedU.S. House of Representatives Speaker Kevin McCarthy will meet with President Joe Biden for a higher debt ceiling. Earlier this month, Treasury Secretary Janet Yellen said Biden would have to act if the national debt ceiling was not raised.