US Treasury Secretary Janet Yellen issued a letter on May 22 warning of non-payment within as short a period as ten days.
Inability to pay bills
Yellen wrote in a letter to the US Congress:
“…It is highly likely that the Treasury will no longer be able to meet all of the government’s obligations if Congress has not acted to raise or suspend the debt ceiling by early June, and potentially as soon as June 1.”
Yellen noted that she had previously said it was impossible to provide an exact date for the Treasury’s possible failure to pay government bills. She now says the Treasury took additional information into account for its projection.
Although Yellen did not use the word “default”, failure to meet public debt obligations is generally considered a default.
Resolution of debt ceiling negotiations needed
Yellen urged Congress to act to address the debt limit issue. Currently, President Joe Biden and congressional leaders are trying to negotiate spending cuts that could raise the debt ceiling and prevent a default — with the Biden administration favoring closing tax loopholes that apply in part to big crypto investors.
Yellen indirectly addressed these negotiations by noting that a last-minute fix could hurt the economy at the consumer, business and government level.
Some crypto investors, however, are optimistic about the prospects of a US default, as a slowdown in the traditional economy could spark interest in crypto.
Treasury Secretary post Yellen repeats that the US debt default warning appeared first on CryptoSlate.