Treasury Updates Debt Ceiling Deadline

Negotiations on the debt ceiling continue between Speaker McCarthy and President Biden.

UPDATE: 5/26, 2023, 5:30 PM EST

In a letter to Congress, Treasury Secretary Janet Yellen narrowed down a more accurate deadline for Congress to finalize debt negotiations. “Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5,” she wrote. 

The new deadline will provide a few extra days for federal leaders to reach an agreement on the debt ceiling. 

UPDATE: 5/25, 2023, 3:00 PM EST

The Treasury Department has asked federal agencies this week to make payments “at a later date,” to help avoid a June default, as negotiators continue to try to secure a deal on raising the debt ceiling,

Treasury Secretary Janet Yellen sent a letter to House Speaker Kevin McCarthy, reiterating the inability “to satisfy all of the government’s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1.”

“We have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June,” her letter said. “If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.” 

As the Lord Leads, Pray with Us…

  • For wisdom for Secretary Yellen as she oversees the nation’s debt repayment and financial systems.
  • For Speaker McCarthy as ongoing negotiations are held with the president.
  • For President Biden and his advisors to reach a beneficial agreement with Congress on raising the debt ceiling.

Sources: Washington Post, Newsmax 


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