Hitting the limit would force the U.S. Treasury to take 'extraordinary measures' to prevent a default, Yellen says.
about a bruising fight over the debt ceiling this year that could be at least as disruptive as the protracted battle of 2011, which prompted a brief downgrade of the U.S. credit rating and years of forced domestic and military spending cuts.
Yellen's estimate expressing confidence that the government could pay its bills only through early June without increasing the limit marks a deadline considerably sooner than forecasts by some outside budget analysts that the government would exhaust its cash and borrowing capacity - the so called "X Date" - sometime in the third quarter of calendar 2023.
Yellen said that there was "considerable uncertainty" around the length of time that extraordinary measures could stave off default, due to a variety of factors, including the challenges of forecasting the government's payments and revenues months into the future.As of Wednesday, Treasury data showed that U.S. federal debt stood $78 billion below the limit, with a Treasury operating cash balance of $346.4 billion.
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