Goldman Sachs says the US has an extra 8 days before it runs out of money to pay its bills. That could buy it more time to negotiate the debt ceiling.

Treasury Secretary Janet Yellen said June 1 remains a “hard deadline” for raising the federal debt limit.
The US could default on its debt on June 8 or June 9, Goldman Sach’s chief political economist told Bloomberg.
That’s about a week later than the June 1 “X-date” indicated by Treasury Secretary Janet Yellen.
The X-date is when the US can no longer pay its bills if the debt ceiling isn’t raised.

All eyes are on the US debt ceiling right now, and there might be some good news ahead.

Treasury Secretary Janet Yellen has previously said the “X-date,” or the date when the US can no longer pay its bills and risks a default, is June 1

But the actual deadline could be a week later than June 1, Alec Phillips, Goldman Sachs’ chief political economist, told Bloomberg TV on Friday.

“Our guess right now is that the real deadline is probably more like June 8th, 9th, that’s when they’re at sort of greatest risk,” Phillips said.

Phillips did not explain the X-date calculation in the interview….

Continue Reading →

This article was written by Huileng Tan and originally published on www.businessinsider.com