The US could run out of liquidity after June 1 if the debt limit is not raised

The US Treasury Department said Monday it now expects to be able to pay all government obligations through June 1 without an increase in the federal debt limit, adding urgency to a bitter fiscal fight between Republicans and Democrats. Congress and the White House.

US Treasury Secretary Janet Yellen said in a letter to Congress that the agency is unlikely to be able to meet all government payment obligations by “early June.”

After reaching the $31.4 trillion debt ceiling on January 19, Yellen previously told Congress that the Treasury would maintain debt payments, federal benefits and other outlays through at least June 5, using revenues in cash and extraordinary treasury management measures.

The new date reflects a more specific estimate, based on taxes collected during the April 2023 tax filing season.

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