Republican chief negotiator Patrick McHenry said a deal to raise the US debt ceiling is within reach. Meanwhile, US Treasury Secretary Janet Yellen, in a letter to the Speaker of the House, informed that the estimated date for depleting funds to cover US financial liabilities in the absence of raising the debt limit is now June 5.
An agreement to raise the debt ceiling, Patrick McHenry, the Republican chief negotiator, told reporters on Capitol Hill on Friday United States of America At hand, but not yet agreed upon.
In his opinion, Congress will be able to raise the US debt limit before June 5th.
Postponement of the date of possible bankruptcy of the United States
“Based on the latest available data, we estimate that unless the debt limit is raised or suspended, there will be no money to meet the government’s obligations by June 5,” Treasury Secretary Janet Yellen wrote in a letter to House Speaker Kevin McCarthy.
Earlier, she suggested that the deadline be June 1, although she made a reservation that this could not be predicted precisely because of the volatility of budget revenues, for example. from taxes.
The Treasury secretary said this week that she had launched another “emergency measure” that would give the government an additional $2 billion to delay the date for a potential bankruptcy.
She noted that if Congress does not raise the debt limit – currently at $31.4 trillion – the US will run out of money from planned payments, among other things. For social security funds and health insurance for the elderly (Medicare).
The risk of “serious damage” to US credibility
Yellen McCarthy – who is still negotiating with the White House about raising the cap – warned against waiting until the last minute, warning that it risked “serious damage” to US credibility and increase the cost of borrowing.
Despite media reports that the two sides were close to a deal that would cut budget spending and raise the debt limit, there was no agreement on Friday afternoon.
Meanwhile, congressional rules state that members of Congress must have at least 3 days to familiarize themselves with any legislation. Nor is it clear whether the potential agreement will find enough support from members of Congress.
Main image source: Jim Lo Scalzo/Pub/EPA