{"id":1937508,"date":"2023-05-24T23:55:18","date_gmt":"2023-05-25T03:55:18","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-debt-ceiling-default-deadline-is-still-early-june-yellen-warns\/"},"modified":"2023-05-24T23:58:48","modified_gmt":"2023-05-25T03:58:48","slug":"us-debt-ceiling-default-deadline-is-still-early-june-yellen-warns","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-debt-ceiling-default-deadline-is-still-early-june-yellen-warns\/","title":{"rendered":"Yellen warns US debt ceiling default deadline is in early June."},"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%2Fus-debt-ceiling-default-deadline-is-still-early-june-yellen-warns%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=1937508&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. Debt Ceiling Default Deadline Looms<\/h2>\n<div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0524\/bbaaa6c2-b204-4f79-950a-4487a22f813a\/audio.mp3?length=5033133&#038;duration=419\"><\/div>\n<p>Treasury Secretary Janet Yellen has warned that the U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-debt-ceiling-default-deadline-is-still-early-june-yellen-warns\/\" title=\"Yellen warns US debt ceiling default deadline is in early June.\">debt ceiling default deadline<\/a> is fast approaching. Yellen confirmed at a virtual <a href=\"https:\/\/www.wsj.com\/livecoverage\/stock-market-today-dow-jones-05-24-2023\/card\/u-s-labor-market-a-bit-less-hot-yellen-says-SslZDPGmPwflg6K1NBON\">Wall Street Journal CEO Summit<\/a> on May 24 that the deadline is early June, when her department might exhaust the extraordinary measures that have been employed since January.<\/p>\n<h3>The Consequences of Inaction<\/h3>\n<p>Yellen warned that payment prioritization isn\u2019t operationally feasible and that the Treasury will be unable to cover some obligations following the so-called X-date. \u201cIt\u2019s highly likely that we would run out of resources to meet all the government\u2019s obligations in early June and possibly as early as June 1,\u201d she said. \u201cWe no longer see very much likelihood that our resources will enable us to get to the middle or end of June.\u201d<\/p>\n<h3>The Importance of Reaching a Timely Agreement<\/h3>\n<p>The stress she is observing in the financial markets, especially in bonds, \u201cshould be a reminder of the importance of reaching a timely agreement,\u201d she said. Despite growing concerns that both sides will let the country default, Yellen said she believes that a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kevin-mccarthy-debt-limit-should-be-treated-like-our-own-household\/\" title=\"Kevin McCarthy: Debt Limit Should Be Treated \"Like Our Own Household\"\">debt limit agreement<\/a> can still be reached between the White House and House Republicans. \u201cWe simply have to raise the debt ceiling,\u201d Yellen stated.<\/p>\n<h3>What the Experts Say<\/h3>\n<p>According to the Bipartisan Policy Center, the X-date could fall between June 2 and June 13. But nearing this date could trigger the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nyc-could-lose-thirty-percent-of-its-police-force-fire-department-over-vaccine-mandate\/\" title=\"NYC Could Lose Thirty Percent Of Its Police Force, Fire Department Over Vaccine Mandate\">worst-case scenarios<\/a>. \u201cCome early June, Treasury will be skating on very thin ice that will only get thinner with each passing day. Of course, the problem with skating on thin ice is that sometimes you fall through,\u201d Shai Akabas, executive director of the think tank\u2019s Economic Policy Program, said in a statement. \u201cThe longer policymakers wait to address the debt limit, the more likely our economic fate will be determined by external actors.\u201d<\/p>\n<h3>What Can Be Done?<\/h3>\n<p>With only days to avoid a default on the nation\u2019s credit, Sen. Bernie Sanders (I-Vt.) wrote in a <a href=\"https:\/\/www.foxnews.com\/opinion\/biden-must-resist-republican-debt-ceiling-demands-heres-what-needs-instead\">Fox News op-ed<\/a> that President Joe Biden must invoke the 14th Amendment. \u201cThis is not a radical idea. Making sure that the United States continues to pay its bills regardless of whether the statutory increase in the debt ceiling is raised or not is an idea that has been supported by Republicans and Democrats,\u201d he said. \u201cIt must be exercised.\u201d<\/p>\n<h3>What Happens Next?<\/h3>\n<p>There has been some skepticism surrounding Yellen\u2019s June 1 deadline, with several House Republicans urging the Treasury secretary to offer proof of her claims. However, House Speaker Kevin McCarthy (R-Calif.) has accepted the June 1 deadline. Rep. Garret Graves (R-La.), who has been the lead Republican negotiator on getting a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/we-have-to-de-weaponize-manchin-chides-schumer-for-hammering-republicans-after-debt-ceiling-vote\/\" title=\"\u2018We Have To De-Weaponize\u2019: Manchin Chides Schumer For Hammering Republicans After Debt Ceiling Vote\">debt ceiling deal<\/a>, told reporters on May 23 that he can\u2019t call Yellen\u2019s forecasts into question. Rep. Patrick McHenry (R-N.C.), the chair of the House Financial Services Committee, also accepts the June 1 deadline, alluding to Yellen\u2019s \u201cvaried economic experience\u201d and stating that she is a \u201cstraight shooter.\u201d<\/p>\n<h3>The Bottom Line<\/h3>\n<p>The U.S. debt ceiling default deadline is fast approaching, and the consequences of inaction could be dire. It\u2019s important for policymakers to reach a timely agreement to avoid a default on the nation\u2019s credit. The longer they wait, the more likely our economic fate will be determined by external actors.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Janet Yellen, the Treasury Secretary, has restated that the U.S. debt ceiling default deadline is in early June. She stated that her department may run out of extraordinary measures that have been in use since January. Yellen confirmed that she would update Congress on government finances soon during a virtual Wall Street Journal CEO Summit on May 24.<\/p>\n","protected":false},"author":278,"featured_media":1937509,"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":[],"tags":[10142,15402,5487,15651,13148,3633,5286],"class_list":["post-1937508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-ceiling","tag-deadline","tag-debt","tag-default","tag-june","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\/1937508","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\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1937508"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1937508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1937509"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1937508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1937508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1937508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}