{"id":1850425,"date":"2023-02-17T07:05:24","date_gmt":"2023-02-17T12:05:24","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1850425"},"modified":"2023-02-17T07:07:29","modified_gmt":"2023-02-17T12:07:29","slug":"cbo-government-will-run-out-of-cash-between-july-and-september","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cbo-government-will-run-out-of-cash-between-july-and-september\/","title":{"rendered":"CBO: Government Will Run Out of Cash Between July and September"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcbo-government-will-run-out-of-cash-between-july-and-september%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1850425&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2021\/07\/GettyImages-1234015046-scaled.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\"   style=\"display:none\"><\/div>\n<p><a href=\"https:\/\/www.dailywire.com\/topic\/congressional-budget-office-cbo\" target=\"_blank\" rel=\"noopener\">Congressional Budget Office<\/a> On Wednesday, Phillip Swagel, Director of Phillip Swagel, revealed that the federal government could \u201crun out of funds\u201d Between July and Sept.<\/p>\n<p>Federal <a href=\"http:\/\/dailywire.com\/topic\/debt-ceiling\" target=\"_blank\" rel=\"noopener\">debt ceiling<\/a>A cap on the arbitrary amount <a href=\"http:\/\/dailywire.com\/topic\/national-debt\" target=\"_blank\" rel=\"noopener\">national debt<\/a> Congress established, exceeded the statutory limit at nearly $31.4 trillion in December, prompting Treasury Secretary Janet Yellen. <a href=\"https:\/\/www.dailywire.com\/news\/yellen-warns-congress-extraordinary-measures-have-begun-after-debt-ceiling-breached\" target=\"_blank\" rel=\"noopener\">launch<\/a> \u201cextraordinary measures\u201d The government would continue funding it through June. Swagel, whose organization is charged with providing analysis of budget and economic data to Congress, stated that in a <a href=\"https:\/\/www.cbo.gov\/publication\/58940\" target=\"_blank\" rel=\"noopener\">Statement<\/a> The debt limit should be addressed by lawmakers before the government defaults.<\/p>\n<p>\u201cWe project that, if the debt limit remains unchanged, the government\u2019s ability to borrow using extraordinary measures will be exhausted between July and September,\u201d He said. \u201cThe projected exhaustion date is uncertain because the timing and amount of revenue collections and outlays over the intervening months could differ from our projections. In particular, income tax receipts in April could be more or less than we estimate.\u201d<\/p>\n<p>President Joe Biden is currently negotiating to reduce federal spending in advance of any changes to debt ceiling. Republican lawmakers <a href=\"https:\/\/www.dailywire.com\/news\/here-are-the-concessions-house-speaker-kevin-mccarthy-gave-to-republican-holdouts-to-win-their-support\" target=\"_blank\" rel=\"noopener\">struck a deal<\/a> with McCarthy under which the party\u2019s new majority will introduce a budget that must refrain from increasing the debt limit in the name of fiscal responsibility.<\/p>\n<p>\u201cIf the debt limit is not raised or suspended before the extraordinary measures are exhausted, the government would be unable to pay its obligations fully,\u201d Swagel also added. \u201cAs a result, the government would have to delay making payments for some activities, default on its debt obligations, or both.\u201d<\/p>\n<p>Federal Reserve policymakers are responsible for ensuring that the Federal Reserve is a functioning institution. <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-raises-target-interest-rates-by-quarter-point-marking-slowdown-of-aggressive-hikes\" target=\"_blank\" rel=\"noopener\">Increasing<\/a> The Federal Funds Rate has been increased significantly over the past few months. This resulted in higher interest rate across the economy as central banks attempt to curb inflationary pressures. According to a report, interest payments on the national debt will be higher than defense spendings in the next five-years. <a href=\"https:\/\/www.dailywire.com\/news\/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending\" target=\"_blank\" rel=\"noopener\">Projections<\/a> from Moody\u2019s Analytics.<\/p>\n<p>The current national debt exceeds $31.5 trillion. Swagel said \u201cnewly enacted legislation and changes to the economic forecast that boost interest costs and spending on mandatory programs\u201d The cumulative deficit between 2023 &#038; 2032 is projected to increase by $3 Trillion \u201cThe increase in mandatory spending is driven by rising costs for Social Security and Medicare,\u201d He continued. \u201cAs the cost of financing the nation\u2019s debt grows, net outlays for interest increase substantially.\u201d<\/p>\n<p>Biden and McCarthy are nevertheless <a href=\"https:\/\/www.dailywire.com\/news\/sparing-the-sacred-cow-republicans-and-democrats-refuse-to-touch-social-security-as-debt-crisis-looms\" target=\"_blank\" rel=\"noopener\">Vowed<\/a> Not to discuss Medicare and Social Security amendments. These programs accounted for 46% of federal budget in the past fiscal year, along with other health initiatives. <a href=\"https:\/\/fiscaldata.treasury.gov\/americas-finance-guide\/federal-spending\/\" target=\"_blank\" rel=\"noopener\">Data<\/a> From the Treasury Department. According to a Treasury Department report, both trust funds managed through Social Security are expected to go bankrupt by 2035. <a href=\"https:\/\/crsreports.congress.gov\/product\/pdf\/RL\/RL33514\" target=\"_blank\" rel=\"noopener\">Report<\/a> From the Congressional Research Service. To avoid an automatic decrease for all recipients, the agency suggested increasing payroll taxes or reducing payouts.<\/p>\n<p>Biden <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/speeches-remarks\/2023\/02\/07\/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery\/\" target=\"_blank\" rel=\"noopener\">Claim<\/a> During his most recent State of the Union Address, which he managed \u201cthe largest deficit reduction\u201d in the nation\u2019s history during his first two years in office. According to the, he led a decrease in deficit from $3.1 trillion fiscal year 2020 to $1.4 trillion fiscal year 2022. <a href=\"https:\/\/fred.stlouisfed.org\/series\/FYFSD\" target=\"_blank\" rel=\"noopener\">Data<\/a> The Office of Management and Budget did not mention that record spending was due to legislation passed to address the recession-induced lockdown. Last year&#8217;s deficit was still higher than those seen in years prior to the crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Congressional Budget Office On Wednesday, Phillip Swagel, Director of Phillip Swagel, revealed that the federal government could \u201crun out of funds\u201d Between July and Sept. Federal debt ceilingA cap on the arbitrary amount national debt Congress established, exceeded the statutory limit at nearly $31.4 trillion in December, prompting Treasury Secretary Janet Yellen. launch \u201cextraordinary measures\u201d &hellip;<\/p>\n","protected":false},"author":1,"featured_media":997882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[4119,16309,5045,10055,7402],"class_list":["post-1850425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-cash","tag-cbo","tag-government","tag-july","tag-september"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1850425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1850425"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1850425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/997882"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1850425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1850425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1850425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}