Yellen being a mouthpiece for the president:
- Early June as the debt ceiling default deadline
- Will update Congress shortly about government finances
- Biden's commitment that all US will not default is important
- Will try to increase the level of precision on date
- believes a deal as possible to avoid debt limit default.
- Biden has offered changes and that will result in 1 trillion in deficit reduction.
- Treasury and Pres. Biden will face tough choices if Congress doesn't act to raise debt ceiling.
- If we get to X-date without debt ceiling deal, there will be some obligations we will be unable to pay.
- There is no outcome that will be acceptable
- Payment prioritization is not operationally feasible. We are seeing some stresses in financial markets over debt ceiling citing some bills coming due in early to mid June trading at higher interest rates
