Yellen warns Treasury could hit debt ceiling as early as June – JP

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In a call with reporters Friday, Shai Akabas, the BPC’s director of economic policy, said due to President Joe Biden’s multiple student loan suspensions, high inflation and interest rates, “the situation has deteriorated somewhat relative to our projection eight months ago.”

But he said that does not necessarily mean the Treasury would run out of resources before July 1. The BPC plans to update its forecast after seeing the Congressional Budget Office’s projections of spending and revenue when they are released next month.

Akabas said he is particularly interested in CBO’s revenue projections.

“What we are looking for is what they expect will happen during this tax season,” he said. “Last tax season we had an influx of revenues that went beyond what most estimates were projecting, and this year it will be interesting to see whether they are projecting the same or a variation from that.” 

Lou Crandall, chief economist for Wrightson ICAP, estimated this week that Treasury would hit the “x date” in August, with the caveat that forecasts continue to evolve.

Source
Las Vegas News Magazine

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