The new June 5 deadline for Congress to lift the debt limit “maintains and ensures the urgency” negotiators have to close a deal this weekend.
That’s what Republican negotiator and House Financial Services Chairman Patrick T. McHenry told reporters shortly after Treasury Secretary Janet L. Yellen sent congressional leaders a letter updating the “x date” in which her department expects to run out of cash and accounting maneuvers to continue paying all of the government’s debt obligations.
Yellen previously estimated the cash crunch would hit as early as June 1 but she had left wiggle room that it could happen later in early June. Her newest estimate is more definitive. She said Treasury will not have enough resources to make roughly $92 billion of payments and transfers that are due the week of June 5.
