{"id":1936833,"date":"2023-05-24T08:40:46","date_gmt":"2023-05-24T12:40:46","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-sounds-alarm-on-default-in-new-warning-to-mccarthy-on-debt-ceiling-deadlock\/"},"modified":"2023-05-24T08:50:21","modified_gmt":"2023-05-24T12:50:21","slug":"yellen-sounds-alarm-on-default-in-new-warning-to-mccarthy-on-debt-ceiling-deadlock","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-sounds-alarm-on-default-in-new-warning-to-mccarthy-on-debt-ceiling-deadlock\/","title":{"rendered":"Yellen warns McCarthy of default due to debt ceiling deadlock."},"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\">20<\/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%2Fyellen-sounds-alarm-on-default-in-new-warning-to-mccarthy-on-debt-ceiling-deadlock%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=1936833&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--><blockquote>\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0523\/c2b71d30-6a0b-4c51-be7f-1d98817a1da0\/audio.mp3?length=5665869&#038;duration=472\"><\/div>\n<p>Treasury Secretary Janet Yellen has issued a renewed\u2014and alarmist\u2014warning to House Speaker Kevin McCarthy (R-Calif.) and other congressional leaders, reiterating her earlier position that the country could run out of money to pay its debt obligations as early as June 1, but this time around expressing more confidence in her dire prediction.<\/p>\n<p>Yellen has repeatedly warned that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-sounds-alarm-on-default-in-new-warning-to-mccarthy-on-debt-ceiling-deadlock\/\" title=\"Yellen warns McCarthy of default due to debt ceiling deadlock.\">debt ceiling deadlock grinding<\/a> on in Washington is pushing the country closer to the so-called X-date, when the Treasury Department\u2019s bag of accounting tricks (known as \u201cextraordinary measures\u201d) runs out and the government faces the prospect of a debt default.<\/p>\n<p>In her first letter to McCarthy on May 1 (<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy1454\">pdf<\/a>), Yellen said it was the Treasury Department\u2019s \u201cbest estimate\u201d that it would be unable to continue to satisfy all of the government\u2019s debt obligations by early June and potentially as early as June 1. She reiterated that view in a May 15 letter, in which she noted it\u2019s impossible to predict the exact timing of the X-date.<\/p>\n<p>But in a new letter (<a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy1497\">pdf<\/a>) to McCarthy and congressional leaders on Monday, Yellen\u2019s rhetoric took a more alarmist tone, saying that incoming data show it\u2019s now \u201chighly likely\u201d that the government will run out of money as early as June 1.<\/p>\n<p>\u201cWith an additional week of information now available, I am writing to note that we estimate that it is highly likely that Treasury will no longer be able to satisfy all of the government\u2019s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1,\u201d Yellen wrote.<\/p>\n<p>Yellen\u2019s increased confidence in her X-date estimate stands in some contrast to a <a href=\"https:\/\/www.theepochtimes.com\/us-will-run-out-of-money-to-pay-bills-by-june-8-goldman-analyst_5282412.html\">projection from Goldman Sachs<\/a>, which expects the country to have a bit more runway\u2014until June 8\u2014before it runs out of money. Still, the investment bank warned that \u201cwaiting for the last minute isn\u2019t necessarily the right move, even though we think that maybe they could go a little longer.\u201d<\/p>\n<p>McCarthy and the Republicans have been deadlocked in debt cap talks with President Joe Biden and the Democrats, with the latest negotiating session on Monday <a href=\"https:\/\/www.theepochtimes.com\/biden-mccarthy-have-productive-meeting-but-no-deal-yet-on-debt-ceiling_5282349.html\">failing to deliver<\/a> a breakthrough.<\/p>\n<p>In seeking to push those talks forward, Yellen urged the sides to find a solution \u201cas soon as possible\u201d while warning that \u201cwaiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-us-will-be-out-of-money-in-october-if-congress-doesnt-raise-debt-ceiling\/\" title=\"Yellen: US Will Be Out Of Money In October If Congress Doesn\u2019t Raise Debt Ceiling\">raise short-term borrowing costs<\/a> for taxpayers, and negatively impact the credit rating of the United States.\u201d<\/p>\n<p>Already there have been signs of stress in Treasury markets, with the government\u2019s borrowing costs for securities maturing in early June seeing a spike.<\/p>\n<h2>\u2018Productive\u2019 Meeting But No Deal<\/h2>\n<p>McCarthy and Biden emerged on Monday from a 90-minute negotiating session at the White House on Monday saying that some progress had been made but with no substantial breakthrough.<\/p>\n<p>The two struck somewhat optimistic tones in separate remarks to reporters after the meeting, while calling for further progress in averting a default.<\/p>\n<p>\u201cI think the tone tonight was better than any other time we\u2019ve had discussions,\u201d <a href=\"https:\/\/www.theepochtimes.com\/biden-mccarthy-have-productive-meeting-but-no-deal-yet-on-debt-ceiling_5282349.html\">McCarthy said<\/a>. \u201cWe still will have some philosophical differences, but I felt it was productive \u2026 and I think we were able to really focus on the areas of difference.\u201d<\/p>\n<div class=\"video_fit_container\">\n    <iframe loading=\"lazy\" width=\"671\" height=\"377\" class=\"video_frame\" src=\"https:\/\/www.youtube.com\/embed\/nNSWJ2x2iCc?wmode=transparent&#038;wmode=opaque\" allowfullscreen><\/iframe>\n  <\/div>\n<p>Biden struck a fairly optimistic note when discussing the talks, while offering hope for reaching a deal to raise the nation\u2019s $31.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/terry-paulson-time-to-build-public-support-for-debt-limit-demands\/\" title=\"Terry Paulson: Time to Build Public Support for Debt Limit Demands\">4 trillion debt limit<\/a>.<\/p>\n<p>\u201cI just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy,\u201d the president said in a statement on Twitter.<\/p>\n<p>\u201cWe reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement. While there are areas of disagreement, the Speaker and I, and his lead negotiators Chairman McHenry and Congressman [Garret] Graves, and our staffs will continue to discuss the path forward.\u201d<\/p>\n<p>Rep. Patrick McHenry (R-N.C.), the lead negotiator for the Republicans, said the meeting provided some added clarity.<\/p>\n<p>\u201cWe got very good direction from the speaker and from the president, the speaker to his team, and the president to his team in the same room. We\u2019re on the same page where the same set of issues got to work through it was productive,\u201d McHenry said.<\/p>\n<p>\u201cThe teams in the room have built some level of relationship and trust that we can actually get a product that is mutually agreeable to,\u201d McHenry added.<\/p>\n<p>McCarthy declined to specify any points of agreement thus far, telling reporters on Capitol Hill that, \u201cwe don\u2019t agree to anything until we agree to everything.\u201d<\/p>\n<h2>Imminent Compromise?<\/h2>\n<p>Despite the lack of a breakthrough, there is hope that a compromise can be reached before the country reaches the X-date. Both sides have expressed a willingness to work together and find a solution to avoid a catastrophic default.<\/p>\n<h3>Here are some possible solutions:<\/h3>\n<ul>\n<li>Raise or suspend the debt limit<\/li>\n<li>Pass a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ukraine-covid-and-monkeypox-biden-asks-congress-for-another-47-billion-to-address-critical-needs-for-the-american-people\/\" title=\"Ukraine, COVID, And Monkeypox: Biden Asks Congress For Another  Billion To Address \u2018Critical Needs For The American People\u2019\">short-term spending bill<\/a> to buy more time for negotiations<\/li>\n<li>Use reconciliation to pass a debt limit increase with a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/blackburn-introduces-amendments-to-counter-china-and-iran\/\" title=\"Blackburn Introduces Amendments to Counter China and Iran\">simple majority vote<\/a><\/li>\n<\/ul>\n<p>Whatever the solution, it\u2019s clear that action needs to be taken soon to avoid a potentially disastrous outcome for the US economy.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>warned congressional leaders, including House Speaker Kevin McCarthy, that the US could run out of money to pay its debt obligations by June 1. Treasury Secretary Janet Yellen has expressed more confidence in her dire prediction.<\/p>\n","protected":false},"author":118,"featured_media":1936834,"comment_status":"open","ping_status":"closed","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":[543],"tags":[10142,13410,5487,15651,3663,3633,5286],"class_list":["post-1936833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-ceiling","tag-deadlock","tag-debt","tag-default","tag-mccarthy","tag-warns","tag-yellen"],"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\/1936833","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\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1936833"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1936833\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1936834"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1936833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1936833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1936833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}