The U.S. reached its statutory $31.4 trillion debt limit on Jan. 19, forcing the Treasury Department to begin using accounting maneuvers known as extraordinary measures to conserve cash and avoid breaching the cap. When will the U.S. run out of cash?
Bernie Sanders speaks to members of the press on Capitol Hill on March 7, 2023.
While Treasury has the most sophisticated cash management system in the world and employs teams of highly trained economists, its coffers are a blur of payments going out and tax revenues coming in. When its cash balance runs painfully low — as was the case Wednesday, when the Treasury General Account started the day with less than $100 billion — pinpointing the X-date becomes even harder to predict. In many respects, that is because the moment that a default would occur is a moving target.
Another surprising reason that cash is running lower than some budget experts projected is that the IRS is starting to operate more efficiently. As a result of the $80 billion that the agency received as part of the Inflation Reduction Act last year, it has been able to ramp up hiring and chip away at the backlog of unprocessed tax returns.
The Congressional Budget Office said in a report last week that an expected influx of quarterly tax receipts on June 15 and the availability of additional extraordinary measures would probably allow the government to continue financing operations through at least the end of July.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
10-year Treasury yield dips as investors weigh U.S. economic outlookU.S Treasury yields were mixed on Wednesday as investors assessed what could be next for the economy amid ongoing debt ceiling and recession concerns.
Read more »
Treasury prices hold steady ahead of housing starts, while debt ceiling concerns remainTreasury yields were holding mostly steady on Wednesday, with the 30-year rate easing back from a March high, as investors looked ahead to U.S. housing...
Read more »
New Zealand Treasury: No longer forecasting the country to move into recessionNew Zealand Finance Minister said while presenting the country’s Budget on Thursday, “the Treasury is no longer forecasting the country to move into r
Read more »
Treasury yields hold steady as optimism for a debt ceiling crisis resolution growsU.S. Treasurys held steady on Thursday as debt ceiling deal negotiations appeared to progress, giving investors hope that the crisis would soon be resolved.
Read more »
Crypto retail trading should be regulated as gambling: UK lawmakersCrypto trading is akin to gambling and should be regulated as such, UK lawmakers have claimed in a newly published report.
Read more »
United 1944 To Launch Open Beta Later This WeekICYMI: Squad up and be prepared to fight in United1944, as the developers will be launching a new Open Beta this coming Friday. indiedev indiegame
Read more »