12 key points to consider on the debt ceiling and the markets
Is there any flexibility in the Treasury’s X-date?
On Monday, May 22, Treasury Secretary Janet Yellen continued to warn policymakers that it was very likely that the Treasury will run out of sufficient cash in early June and that this X-date could still come as soon as June 1.
Disappointing tax revenues and rising interest costs have combined to move the X-date forward from earlier Treasury estimates of July and even August. Capital gains revenues have been weaker than the Treasury’s earlier forecasts.