{"id":1930551,"date":"2023-05-13T19:13:10","date_gmt":"2023-05-13T23:13:10","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/default-can-be-avoided-in-july-if-treasury-can-weather-june-cash-crunch-cbo\/"},"modified":"2023-05-13T19:15:44","modified_gmt":"2023-05-13T23:15:44","slug":"default-can-be-avoided-in-july-if-treasury-can-weather-june-cash-crunch-cbo","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/default-can-be-avoided-in-july-if-treasury-can-weather-june-cash-crunch-cbo\/","title":{"rendered":"CBO: Treasury Can Avoid Default in July with June Cash Management"},"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%2Fdefault-can-be-avoided-in-july-if-treasury-can-weather-june-cash-crunch-cbo%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=1930551&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--><h2>U.S. Government Faces Risk of Defaulting on Debt<\/h2>\n<p>The U.S. government is at risk of defaulting on its debt in the first two weeks of June, with the Congressional Budget Office (CBO) warning that the federal government may no longer be able to cover all its obligations after the middle of June. However, the CBO also stated that if the government can collect enough tax revenue and the Treasury continues employing its extraordinary measures, it \u201cwill probably allow the government to continue financing operations through at least the end of July.\u201d<\/p>\n<h3>Uncertainty Looms<\/h3>\n<p>The uncertainty will persist for the rest of May, according to the CBO. \u201cThe extent to which the government will be able to fund the government\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ford-wants-its-cars-back-from-the-nra\/\" title=\"Ford Wants Its Cars Back From the NRA\u00a0\">ongoing operations<\/a> will remain uncertain throughout May, even if the Treasury ultimately runs out of funds in early June,\u201d the nonpartisan watchdog said in the latest report. \u201cThat uncertainty exists because the timing and amount of revenue collections and outlays over the intervening weeks could differ from CBO\u2019s projections.\u201d<\/p>\n<h3>Consequences of Defaulting on Debt<\/h3>\n<p>Should the Treasury default on the debt or delay payments, the CBO warned that \u201cthose actions could result in distress in credit markets, disruptions in economic activity and rapid increases in borrowing rates for the Treasury.\u201d Treasury Secretary Janet Yellen echoed these comments, warning that a failure to raise the debt ceiling \u201creally impairs our credit rating.\u201d<\/p>\n<h3>Call to Action<\/h3>\n<p>President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) were scheduled to meet on May 12 to discuss the issue, but the meeting was postponed due to a lack of progress. The president took to Twitter, accusing \u201cMAGA House Republicans\u201d of threatening to default \u201cunless we give in to their demands.\u201d Press Secretary Karine Jean-Pierre called it \u201ca manufactured crisis,\u201d adding that there is \u201ca lot of urgency\u201d to resolve this \u201cpotential devastation\u201d for the economy and American households.<\/p>\n<h3>Updated Budget Deficit Projection<\/h3>\n<p>In a separate report, the CBO updated its 2023 projection for the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-reasons-making-taxpayers-pay-off-student-loans-is-a-rotten-idea\/\" title=\"5 Reasons Making Taxpayers Pay Off Student Loans Is A Rotten Idea\">federal budget deficit<\/a>, increasing it to $1.5 trillion. However, it stated that the \u201cestimate is subject to considerable uncertainty, though, in part because of a recent shortfall in tax revenues.\u201d The report further revised the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republican-lawmakers-criticize-inflation-reduction-spending-package-from-democrats\/\" title=\"Republican Lawmakers Criticize \u2018Inflation Reduction\u2019 Spending Package From Democrats\">cumulative deficit<\/a> through 2033 upward by $51 billion, to $20.314 trillion.<\/p>\n<h3>Call for Immediate Action<\/h3>\n<p>The Committee for a Responsible Federal Budget (CRFB) confirmed that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/default-can-be-avoided-in-july-if-treasury-can-weather-june-cash-crunch-cbo\/\" title=\"CBO: Treasury Can Avoid Default in July with June Cash Management\">12-month rolling deficit<\/a> (from May 2022 to April 2023) is $1.942 trillion. CRFB President Maya MacGuineas agreed that it is necessary to raise the debt limit immediately \u201cwithout drama and without any threat of default.\u201d But President Joe Biden and lawmakers must \u201cenact some budget savings and reforms.\u201d<\/p>\n<p>\u201cWith inflation surging and debt approaching a record share of the economy, there is little time to waste. And with the debt limit deadline well in sight, lawmakers must act as soon as possible to make sure the country can pay its bills. Default cannot be an option.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. government could avoid defaulting on its debt through July if the Treasury Department can receive enough revenue in June, according to the Congressional Budget Office (CBO). The agency stated in its updated guidance that if\u00a0the government can collect enough tax revenue and the Treasury continues employing its extraordinary measures, it \u201cwill probably allow<\/p>\n","protected":false},"author":1,"featured_media":1930552,"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":[5454,4119,16309,15651,10055,13148,8575,3778],"class_list":["post-1930551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-avoid","tag-cash","tag-cbo","tag-default","tag-july","tag-june","tag-management","tag-treasury"],"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\/1930551","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=1930551"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1930551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1930552"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1930551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1930551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1930551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}