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US debt ceiling might be reached on December 15th.

On September 30, 2021, US Treasury Secretary Janet Yellen testifies on Capitol Hill in Washington, DC. On September 30, 2021, US Treasury Secretary Janet Yellen testifies on Capitol Hill in Washington, DC.

Treasury Secretary Janet Yellen now expects the government to run out of money by December 15, a date that has been pushed out from the original deadline of December 3.

In a letter to House Speaker Nancy Pelosi on Tuesday, Yellen wrote of the new deadline, “There are scenarios in which Treasury would be left with insufficient financial resources to continue to finance the activities of the United States Government beyond this date.”

While the postponed deadline offers Congress more time to deal with the debt ceiling, it’s unclear how Democrats would continue after Republican leaders, notably Senate Minority Leader Mitch McConnell, have declared repeatedly that they will not support legislation to increase the threshold.

Republicans have argued that Democrats must act alone to raise the debt ceiling through a process known as budget reconciliation, which requires no Republican backing.

Democrats, on the other hand, have claimed that this is a bipartisan problem. While Democratic leaders have publicly dismissed the possibility of using reconciliation, arguing that the process is too long and unwieldy, with too much risk of miscalculation, it may be the only way to address the issue without changing the filibuster, which Democratic Sen. Joe Manchin of West Virginia has repeatedly opposed.

The coming December deadline comes after Congress authorized an extension of the country’s debt ceiling in October, despite Yellen’s dire warnings about the economic consequences if the matter was not resolved.

Following that agreement, McConnell wrote to President Joe Biden, warning, “I will not provide such assistance again if your all-Democrat government drifts into another avoidable crisis,” and telling him that his “lieutenants on Capitol Hill now have the time they claimed they lacked to address the debt ceiling through standalone reconciliation, and all the tools to do it.”

“As the federal government’s financial flow is susceptible to inevitable unpredictability,” Yellen said in her Tuesday letter, “I will continue to brief Congress as new information becomes available.” “It is important that Congress raises or suspends the debt ceiling as quickly as possible to maintain the United States’ full faith and credit,” she said.

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On September 30, 2021, US Treasury Secretary Janet Yellen testifies on Capitol Hill in Washington, DC. On September 30, 2021, US Treasury Secretary Janet Yellen testifies on Capitol Hill in Washington, DC.

Treasury Secretary Janet Yellen now expects the government to run out of money by December 15, a date that has been pushed out from the original deadline of December 3.

In a letter to House Speaker Nancy Pelosi on Tuesday, Yellen wrote of the new deadline, “There are scenarios in which Treasury would be left with insufficient financial resources to continue to finance the activities of the United States Government beyond this date.”

While the postponed deadline offers Congress more time to deal with the debt ceiling, it’s unclear how Democrats would continue after Republican leaders, notably Senate Minority Leader Mitch McConnell, have declared repeatedly that they will not support legislation to increase the threshold.

Republicans have argued that Democrats must act alone to raise the debt ceiling through a process known as budget reconciliation, which requires no Republican backing.

Democrats, on the other hand, have claimed that this is a bipartisan problem. While Democratic leaders have publicly dismissed the possibility of using reconciliation, arguing that the process is too long and unwieldy, with too much risk of miscalculation, it may be the only way to address the issue without changing the filibuster, which Democratic Sen. Joe Manchin of West Virginia has repeatedly opposed.

The coming December deadline comes after Congress authorized an extension of the country’s debt ceiling in October, despite Yellen’s dire warnings about the economic consequences if the matter was not resolved.

Following that agreement, McConnell wrote to President Joe Biden, warning, “I will not provide such assistance again if your all-Democrat government drifts into another avoidable crisis,” and telling him that his “lieutenants on Capitol Hill now have the time they claimed they lacked to address the debt ceiling through standalone reconciliation, and all the tools to do it.”

“As the federal government’s financial flow is susceptible to inevitable unpredictability,” Yellen said in her Tuesday letter, “I will continue to brief Congress as new information becomes available.” “It is important that Congress raises or suspends the debt ceiling as quickly as possible to maintain the United States’ full faith and credit,” she said.

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