Federal Government Will Run Out of Cash on Oct. 18 If Debt Ceiling Isn’t Raised: Treasury Secretary

Treasury Secretary Janet Yellen on Tuesday warned members of Congress that the United States’ cash reserves will likely be exhausted unless lawmakers vote to raise or suspend the debt ceiling by Oct. 18, warning that it’s not clear if the United States would be able to meet all of its financial obligations if no deal is passed by then. If that deadline is reached, “we expect Treasury would be left with very limited resources that would be depleted quickly,” Yellen warned, adding that it is “uncertain whether we could continue to meet all the nation’s commitments after that date.” Should the debt limit be reached without a bill passed in Congress, Yellen wrote (pdf) that there could be “substantial disruptions” to the stock market that will thereby “erode investor confidence” and increase volatility. The federal government has spent, on average, about $50 billion per day and at times has exceeded $300 billion in …Read More

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