US Could Hit Debt Ceiling in June, Banks Warn

(Worthy News) – The U.S. government’s deadline to raise the $31.4 trillion debt ceiling could be sooner than expected, raising the prospect of a short-term debt limit extension, analysts said Tuesday.

Goldman Sachs analysts said weak tax collections so far in April indicate a higher probability that the so-called “X-date,” when the government is no longer able to pay all its bills, would be reached in the first half of June. Analysts at Citi said they expected a short-term deal in June or July.

The Treasury Department has warned that the federal government could reach the moment when it will no longer be able to meet its financial obligations as early as June 5, while the nonpartisan Congressional Budget Office has forecast that moment would come sometime between July and September. [ Source (Read More…) ]

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