Run out of cash next month! Yellen warned that the United States may fall into a debt crisis in Octo

Original title: run out of cash next month! Yellen warned that the United States may fall into a debt crisis in October
Edited by: Bi Luming
On September 9, according to CCTV news, US Treasury Secretary Janet Yellen warned congressional leaders on September 8 local time that if the White House and Congress could not raise the debt ceiling, the United States would default on its national debt in October.
Yellen said that the Treasury Department may run out of cash sometime next month, and the federal government's legal borrowing limit will also reach the upper limit.
Yellen has been urging lawmakers for months to raise the debt ceiling by August, warning that delaying the increase of the debt limit could "cause irreparable damage to the U.S. economy and global financial markets".

Source: Xinhua News Agency
In addition, according to previous reports by China News Agency, US Treasury Secretary Yellen wrote to congressional leaders on July 23 local time, asking Congress to take action to raise the federal government debt ceiling or suspend its entry into force, otherwise the Treasury Department will take "unconventional measures" to prevent government debt default.
Yellen also said that there was "great uncertainty" about the sustainability of the Treasury's "unconventional measures". It was already a challenge to predict the U.S. government's expenditure and revenue in the coming months, and the epidemic exacerbated the uncertainty.
Yellen stressed that if there is a government debt default, it will "bring irreparable damage to the U.S. economy and people's lives". Even the risk of possible debt default will have a negative impact.
There was no government debt default in the history of the United States, but in 2011, the U.S. sovereign credit rating was downgraded due to the refusal of Republicans in Congress to raise the debt ceiling, resulting in financial market turmoil.

Source: Xinhua News Agency
The Congressional Budget Office released a report on the 21st. It is expected that the unconventional cash management measures of the Treasury Department may be exhausted in the first quarter of the new fiscal year starting on October 1 this year. Most likely, in October or November, the U.S. government will face the risk of debt default.
For Yellen's warning, White House press secretary pusaki called it a "normal" step. She also said that Congress is expected to take measures to raise the debt ceiling or suspend its entry into force as soon as possible.
At present, Senate Republican leader McConnell has said that the Republican Party will not support raising the debt ceiling. US media believe that the Biden government can only count on Democratic lawmakers to support the passage of relevant legislation.
According to the bipartisan budget bill that came into effect in August 2019, Congress agreed to temporarily lift the debt ceiling and allow the Treasury to issue new bonds until July 31, 2021. From August 1 this year, the debt ceiling will return to effect.
Daily economic news comprehensive CCTV news, China News Agency
Daily economic news