The Treasury Department may run out of resources to fund the federal government as early as December 15, nearly two weeks later than expected, Treasury Secretary Janet Yellen said Tuesday – asking Congress to stop and raise the debt limit for the second time this year. The deadline is giving US defaults on obligations for the first time.
Yellen has a “high level of confidence” the Treasury can fund the government until mid-December, but “there are scenarios” in which the Treasury could run out of funds after that, she said in a statement. Tuesday’s letter For House Speaker Nancy Pelosi (D-California).
The date on which the federal government will run out of resources is difficult to fix because Cash flow may varyYellen said.
Yellen urged Congress leaders to prevent default by raising or suspending the loan limit — a cap on total federal borrowing — “as soon as possible.”
Congress passed a short-term debt limit increase last month, and the Treasury Department Initially told MPs The measure can only keep government actions funded until December 3, so Tuesday’s prediction gives congressional leaders a little more time to strike a longer-term deal or suspend debt limits on a longer term deal.