Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Treasury Could Run Out of Cash by Year-End, CBO Says

EconomyNov 30, 2021 20:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. The U.S. Treasury building in Washington, D.C. 2/2

(Bloomberg) -- The nonpartisan Congressional Budget Office on Tuesday echoed a warning by Treasury Secretary Janet Yellen that the federal government could run out of money after mid-December if lawmakers fail to raise the debt limit.

The CBO noted that the Treasury plans to transfer $118 billion to the Highway Trust Fund on Dec. 15 -- a move that follows the passage of President Joe Biden’s infrastructure package earlier this month.

“If the debt limit remained unchanged and if the Treasury made that transfer in full, the government’s ability to borrow using extraordinary measures would be exhausted soon after it made the transfer,” the CBO said. “In that case, the Treasury would most likely run out of cash before the end of December.”

Yellen earlier on Tuesday reiterated her call to lawmakers to address the debt limit, saying: “If we do not, we will eviscerate our current recovery.”

Congress passed a short-term increase in the federal debt ceiling last month. The Treasury has been deploying extraordinary measures in recent weeks to avoid breaching the limit. Congressional leaders have yet to agree on a longer-term fix.

Senate Republican leader Mitch McConnell said earlier Tuesday that the U.S. won’t default on its obligations and that he is in talks with Majority Leader Chuck Schumer on a path forward to extend the debt limit. But neither leader has budged publicly from their previous stances that resulted in a stalemate over the way forward.

Yellen reiterated, in her appearance at the Senate Banking Committee Tuesday, that there are “scenarios” under which the Treasury would run out of cash after Dec. 15, but that she had a high degree of confidence the department had sufficient funds until that date.

(Updates with context starting in first paragraph.)

©2021 Bloomberg L.P.

U.S. Treasury Could Run Out of Cash by Year-End, CBO Says
 

Related Articles

Top 5 Things to Watch in Markets in the Week Ahead
Top 5 Things to Watch in Markets in the Week Ahead By Investing.com - Jan 16, 2022

By Noreen Burke Investing.com -- Earnings season kicks into high gear in the coming week, with the financial sector particularly in focus. Earnings results will test growth stocks...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Chris Hm
Chris Hm Nov 30, 2021 20:12
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wasn't aware ponzi schemes had debt limits.
Chris Hm
Chris Hm Nov 30, 2021 20:12
Saved. See Saved Items.
This comment has already been saved in your Saved Items
...and the reason to not bet against it...markets can remain irrational longer than you can remain solvent.
Veijo Sinerva
Veijo Sinerva Nov 30, 2021 20:12
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol. Very good!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email