US Treasury Funds To End October 18 If Congress Does Not Raise Debt Limit - Letter

US Treasury Funds to End October 18 if Congress Does Not Raise Debt Limit - Letter

The financial resources of the US Treasury may end on October 18 if Congress does not act quickly to raise or suspend the national debt limit, Treasury Secretary Janet Yellen said on Tuesday

WASHINGTON (Pakistan Point News / Sputnik - 28th September, 2021) The financial resources of the US Treasury may end on October 18 if Congress does not act quickly to raise or suspend the national debt limit, Treasury Secretary Janet Yellen said on Tuesday.

"We now estimate that Treasury is likely to exhaust its extraordinary measures if Congress has not acted to raise or suspend the debt limit by October 18. At that point, we expect Treasury would be left with very limited resources that would be depleted quickly. It is uncertain whether we could continue to meet all the nation's commitments after that date," Yellen said in a letter to the US House Speaker Nancy Pelosi.

Yellen noted that October 18 is the department's best estimate and can easily shift backward or forward since the Federal government expenditures are unpredictable and amount on average to $50 billion per day.

Yellen warned the US lawmakers against acting at the last minute on the debt limit to prevent serious harm to business and consumer confidence as well as negatively impact the credit rating of the United States for the coming years.

Last week, US House Speaker Nancy Pelosi vowed to overcome political opposition and pass a temporary funding bill to raise the country's debt limit in order to keep the government running.

Negotiations on the debt ceiling between Democrat lawmakers and their Republican rivals have dragged on for months, with no immediate solution in sight. Democrats and Republicans have squared off over the debt ceiling several times over the past decade and briefly allowed the United States to surpass it during the Trump administration.