American media reports that the U. S. Secretary to the Treasury Janet Yellen has stated on Monday (01 May) that the government will run out of cash by 01 June if Congress does not raise or suspend the debt limit.
According to US Media Yellen has stated that "After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time,"
She has urged the Congress to act "as soon as possible" to address the $31.4tr debt limit. The debt limit imposed by the government has been raised 78 times since 1960 in order to facilitate the needs of the economy.
The deadlock in the discussions on the debt ceiling has been due to Bidden administration not being able to come to an agreement with the Republicans on increasing the debt ceiling. It seems that the Republican are holding some of Bidden's policies hostage in return for agreeing to raise the debt ceiling, particularly Joe Bdden's policies on forgiving student load debt and the green energy tax credits. Republicans in the house has been insisting on reducing government spending.
The deadlock has created significant uncertainty in the US markets, failure to address this issue can even lead to a default according to BBC News, which will be a first in the US history.