Rates – New June 1 date X for the US Treasury Debt Ceiling

US Treasury Secretary Janet Yellen said in a letter to Congress that the agency may not be able to meet all of its debt obligations as of June 1 if the debt ceiling is not raised.

The date is older than the estimate made by the Treasury Department in January, indicating that the US fiscal situation is more precarious than previously known. Here’s how lawmakers, economists, and others have responded:

Democratic Senator Sheldon Whitehouse, chairman of the Senate Budget Committee:

“Republicans’ inability to properly raise the debt ceiling has pushed the United States to the brink of economic disaster. We learned today that within a month we could see an economic shock that could dwarf the Great Recession, and Republicans are insisting on holding the economy hostage, further exacerbating economic instability. … Hostage-taking is not how this country is run. We need to change course, raise the debt ceiling nicely, and stave off widespread economic pain and instability while we still can.”

no. 2. Senate Republican John Thune:

“It reinforces the need for the president to come here or for (House Speaker Kevin) McCarthy to come here to meet him, either way. I mean, time is running out.”

Representative Brendan Boyle, House Budgets Committee Member:

“House Republicans don’t have much time to fend off an economic disaster of their own making. Today’s Treasury update should shake Speaker McCarthy—he’s wasted enough time in the House to please his MAGA Republican allies.”

Democratic Senator Patty Murray, member of the Senate Budget Committee:

“House Republicans need to understand that having a majority means they actually have to govern. It’s time to work hard with Democrats to simply foot the bill for our country and avoid a catastrophic debt default as soon as possible.” The clock is ticking away—and much faster than many expected—so House Republicans must drop their dangerous resistance to paying our nation’s bills.”

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Democratic Senator Brian Schatz:

“Taking the American economy hostage cannot be tolerated, and the only thing more frightening than not negotiating with these people is negotiating with them, because they will never stop holding Americans and the American economy hostage.” When asked if the Democrats could stick to that line, he replied, “We have to.”

Republican Senator Mitt Romney:

“Not paying our debts is a frightening prospect—it would destabilize our economy, harm global trade, and hurt our allies. Plus, we wouldn’t be able to pay Social Security and pay our soldiers. The president must negotiate a raise in the debt ceiling.”

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