What this means is that the United States will run out of money “in less than three weeks.”
The president of the US, Joe Biden, and Republican House Speaker Kevin McCarthy discussed lifting the country’s debt ceiling together. The US Congress sets a limit on how much money the government may spend called the “debt ceiling,” which also serves as a borrowing ceiling.
Despite the fact that the two were unable to come to an agreement, McCarthy asserted following the meeting, “I believe we can get a deal done.” “ We have not yet come to a consensus. However, I felt that the discussion was productive when we disagreed. We’ll talk every day until we finish this, said McCarthy.
In a statement, the US president said ,”I just wrapped up a fascinating interview with Speaker McCarthy about the need to avert default and a financial collapse for our economy.” We reiterated that going into default is not an option and that the only way to move forward is to seriously try to reach an agreement.
This occurred at a time when Goldman Sachs warned that if the “US debt” problem is not resolved, the US will run out of money in three weeks. The minimal amount required for the greatest economy in the world to pay its debts is $30 billion, which the “Treasury Department’s cash reserves” would fall below by June 8 or June 9.
The “bank’s economists,” Tim Krupa and Alec Phillips, cautioned that the projection was “subject to substantial volatility” and that there was “undoubtedly a chance that receipts could slow higher than anticipated and leave the Treasury short of cash by June 1 or 2.”
A U.S. economic downturn brought on by a default on the nation’s debt would be bad for economies everywhere.