FirstFT: The US Treasury Department faces the risk of running out of cash


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Janet Yellen warns the U.S. Treasury Risk of running out of cash Unless Congress raises the borrowing limit, Joe Biden’s administration is increasingly worried about the possibility of a debt default.

The Treasury Secretary stated in a letter to congressional leaders yesterday that she could not provide a “specific estimate” of when the cash will be exhausted, but the “most likely outcome” is that its treasury will be “depleted” in October.

Yellen added: “The delay in putting the federal government’s ability to meet all of its obligations into question may cause irreparable damage to the U.S. economy and global financial markets.”

The rising risk of the US sovereign debt crisis as early as next month complicates Biden’s efforts to pass his trillion-dollar economic agenda through Congress in the coming weeks.

Raising the U.S. debt ceiling was once a routine matter of Congress, allowing the Treasury Department to pay expenditure bills approved by lawmakers. But Republican lawmakers recently refused to make this request when the White House was under the control of the Democrats. The conditions usually required led to a deadlock on Capitol Hill and sometimes even pushed the United States to the brink of default.

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There are five more stories in the news

1. Goldman Sachs appoints former McKinsey boss to the highest position in Asia Goldman Sachs has Hire the deposed McKinsey executive Kevin Sneader (Kevin Sneader) A few months after he failed to win the re-election of the global consulting company, he served as co-president of the bank’s Asia-Pacific region.

2. The Theranos founder trial begins Elizabeth Holmes’s failure to make her blood testing technology startup Theranos a viable business is not a crime. Her lawyer told the federal jury Yesterday, at the beginning of a closely watched trial, her mental state and Silicon Valley’s propaganda culture will be scrutinized.

3. Sanae Koichi plans to become Japan’s first female prime minister Hard-line nationalists who are outspoken about national security Participated in the competition To succeed Suga Yoshihide. Yoshihide Suga’s predecessor, Shinzo Abe, supported Japan’s first female leader in high school.

4. SEC threatens to sue Coinbase for lending products The US Securities and Exchange Commission warned that it would Sue Coinbase The executives said that if it launches a new digital asset lending product and issues a subpoena to the cryptocurrency trading platform to provide it with more information.

5. PayPal buy now, pay provider Paidy later This U.S. online payment company owns Agree to acquire PaidyIt is a Tokyo-based buy-and-pay group that has spent 300 billion yen ($2.7 billion) in the latest restructuring of the industry. For the latest industry news, please sign up for our fintech newsletter here.

Coronavirus Digest

  • U.S. economic growth “Slightly downshifted” The Fed reported yesterday that it was between June and July due to more contagious delta variants and labor shortages hindering business activity.

  • Indian beauty salonsHas been hit by the country’s devastating second wave of Covid-19 and is working hard to compete with Haircut delivery service.

  • Pfizer’s Top scientist Dismiss the criticism The company has been too aggressive in promoting the widespread management of Covid-19 boosters.

  • Kovacs already Lowered forecasts The Covid-19 vaccine delivered to developing countries has increased by approximately 25% this year.

  • Boris Johnson Dismissed the Conservative Party’s rebellion and won one Provide a comfortable majority for his plan Annual tax increase of 12 billion pounds in response to the NHS and social care crisis.

follow Our live report with Sign up For us Coronavirus business update Regularly report how the pandemic affects the global economy.

the day before

BRICS Summit Indian Prime Minister Narendra Modi will host a virtual gathering of five major emerging economies today. This is Expected to focus on Afghanistan. (Hindustan Times)

Jacob Zuma’s trial resumed in South Africa Following Zuma’s early release from prison last week, the former president’s corruption trial will resume today Medical bail.

European Central Bank Meeting When policymakers meet today, investors expect the central bank to announce a The pace of debt purchases has slowed In response to the recent improvement in economic prospects and the decline in financing costs for governments, businesses and households.

Wm Morrison income This British supermarket group has been the subject of a bidding war for US private equity firms Report interim results today.

What are we still reading

China’s strict gaming restrictions The risks of addiction, over-consumption and over-indulgence have caused video games to be called “poisons”, “drugs” and “mental opium” by state-controlled newspapers.But last month Beijing imposed The strictest restrictions in the world In such games, it reflects people’s growing concerns about the influence of Chinese technology giants.

Living in the shadow of 9/11 When the Twin Towers collapsed on September 11, 2001, Brendan Greeley escaped. He was 26 years old that year. He is 46 years old now. This is his story.

“I told myself that what happened every year was not so important to me. Then last month, the rest of the family fell asleep, and I started to think about the details.”

Brendan Greeley: “I was sitting alone in the basement crying, uncontrollably undulating in the waves for about an hour” ©Shonagh Rae

Libya’s neighbors still feel Muammar Gaddafi’s death For a long time, Libya has been an entrepot for immigrants from the north.But after the 2011 revolution that overthrew the dictator, their numbers skyrocketed and were full of stories of brutality and abuse Common.

“Diesel and Donuts” The search for low-carbon automotive fuel is making food companies compete with the energy industry Tightening of vegetable oil supply“We support renewable fuels and a green agenda, but soybean oil [prices] Tripled. Our members are worried that they might not be able to buy any oil,” said the CEO of the American Bakers Association.

El Salvador’s bet on Bitcoin intensifies investor political unrest The country’s Bitcoin strategy has piled up Its debt market faces new pressures Earlier this year, investors began to sell their bonds due to heightened concerns about the government of President Nayib Bukele. Is it correct for El Salvador to adopt Bitcoin as legal tender? Vote in our poll.

diet

Hong Kong’s gourmet coffee industry may be relatively young, but it has formed its own unique and delicious identity-an identity that combines creativity, local characteristics, and cool specialty beer. Primrose Riordan stock Five top coffee shops in the city.

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