US Treasury Secretary Janet Yellen said the department is still uncertain exactly when the US government will run out of cash to pay its debts, but will keep Congress informed of any change in the June 1 deadline.
Yellen told Bloomberg TV that she will meet with top Wall Street bankers next week on the federal debt ceiling, Sharq al-Awsat reported, citing Reuters.
Emphasizing that most US banks, including banks whose shares have declined, will be able to pay uninsured depositors, Yellen said the department is closely monitoring the situation.
Explaining that the three US banks that went bankrupt in the last few months have suffered huge losses and the percentage of uninsured deposits is very high, Yellen nevertheless emphasized that in general the banking system is well capitalized and continues to generate very strong profits.
Yellen reiterated that Congress’ failure to raise the $31.4 trillion debt ceiling would result in economic and financial disaster.
Yellen met with German Finance Minister Christian Lindner on the sidelines of the G7 finance ministers meeting in Niigata, Japan.
“Secretary Yellen expressed appreciation for Germany’s close coordination on the implementation of sanctions against Russia and discussed the importance of coordinated efforts to combat sanctions circumvention,” the US Treasury Department said in a statement.
The US and a broad coalition of other countries have provided significant economic, security and humanitarian assistance to Ukraine, while at the same time imposing sanctions and export restrictions, causing Russia to bear heavy economic costs from the war.
Yellen also emphasized the importance of building clean, secure and resilient global energy supply chains, according to the Treasury Department.