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Thursday, June 1, 2023

the date of a possible default in payment postponed to June 5

The United States is giving itself a little more time for debt ceiling negotiations and avoiding a default. According to the latest estimate from the US Treasury, in the absence of a political agreement, it could happen on June 5.

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With our correspondent in Washington, Guillaume Naudin

Treasury Secretary Janet Yellen said so in a letter to US parliamentarians. By resorting to extraordinary measures, that is to say by scraping the bottom of the drawers, his services found a way to pay the federal government bills for four additional days.

Based on the most recent data available, we now estimate that the Treasury will not have sufficient resources to meet government obligations if Congress does not raise or suspend the debt ceiling by June 5. “, detailed Janet Yellen.

But the mattress is getting dangerously thin. As of Thursday, it was less than $40 billion. Incidentally, this means that around thirty individuals in the world are currently richer than the American treasury.

Negotiations are progressing

These four extra days will probably not be too much. Negotiations between the White House and House Republicans have reportedly made progress. The administration has apparently agreed to reverse the financing of tax audits on the richest, to transfer them to social assistance.

But there are sticking points. In particular on the conditions required to receive certain medical aids. Joe Biden refuses to allow the most modest to be deprived of it, when the Republicans want to impose very strict work obligations.

And then there is the intransigence of the most extreme Republicans, the most Trumpists. They are not ready for many concessions and for now, their approval is essential to find an agreement that would avoid the first default in the history of the country.

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