Yellen Says Treasury Could Be Out of Cash by June

Janet Yellen warns that the Treasury's debt limit measures may be exhausted by June 1st, potentially leading to a default. Market strategists are concerned about low tax receipts, suggesting the X date could be earlier than expected. The White House and Republicans are at a standoff, with the White House seeking a clean debt ceiling raise and Republicans demanding spending cuts. The urgency of the situation is highlighted by past credit rating downgrades and the short time frame for action.

What is the significance of June 1st according to Janet Yellen's letter?

• It marks the end of the fiscal year.

• It is the date for a new budget proposal.

• It is the deadline for tax payments.

• It is the potential date when the Treasury's debt limit measures may be exhausted.

Why are market strategists concerned about the X date being in early June?

• Because the government has surplus funds.

• Because tax receipts have been higher than expected.

• Because tax receipts have been running well below 2022 levels.

• Because the stock market is performing poorly.

What could potentially extend the Treasury's ability to meet obligations beyond early June?

• A new fiscal policy.

• An increase in interest rates.

• A decrease in government spending.

• A new round of tax payments on June 15th.

What is the White House's stance on the debt ceiling issue?

• It wants to increase taxes.

• It seeks a clean debt ceiling raise without negotiations.

• It wants to negotiate spending cuts.

• It plans to lower the debt ceiling.

What is the main point of contention between the White House and Republicans regarding the debt ceiling?

• The timeline for budget approval.

• The appointment of a new Treasury Secretary.

• The demand for spending cuts in exchange for raising the debt limit.

• The amount of tax increase.