The US government could run out of money by June 9, economists at Goldman Sachs have warned.
The Treasury’s early June deadline for the debt ceiling looks “very accurate, in our opinion,” Alec Phillips and Tim Krupa told MarketWatch.
According to their calculations, by June 2, the Treasury’s headroom under the debt ceiling will be just over $30 billion – the minimum cash the Treasury has targeted in previous debt limit projections – and the funds will be fully depleted by June 9, MarketWatch wrote on Friday.
Phillips and Krupa expect a debt ceiling agreement to be announced late Friday or Saturday. They say there’s an 80% chance of a full-fledged deal, 10% chance of a near-term fix, and 10% chance Congress won’t act in time, the outlet added.
The US government faces default on its $31 trillion debt if lawmakers fail to raise the federal borrowing limit. Treasury Secretary Janet Yellen claimed earlier this week that early June was a debt ceiling default deadline.
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Reuters reported on Thursday that President Joe Biden and top Republican lawmaker Kevin McCarthy were close to reaching a debt ceiling deal but have yet to agree cuts to discretionary spending, which funds a wide range of military and national programs.
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