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In a letter to Nancy Pelosi, president of the House Democrat, Mnuchin wrote that the United States may default on their obligations in early September, before the return of the summer vacation Congress.
"Based on updated projections, there is a scenario in which we ran out of cash in early September, before the Congress met again," wrote Mnuchin in a letter.
The federal government has no longer been able to borrow money since March, when the borrowing limits prescribed by Congress came into force. The US Treasury, which is facing a growing deficit, in part because of Donald Trump's tax cuts in 2017, had said he had enough cash to last until the end of the year. # 39; fall.
Pelosi and Mnuchin have spoken three times this week to revive the budget and debt ceiling talks, and many sources said the new default projections have accelerated these efforts.
Mnuchin and Pelosi should talk again on Friday. Pelosi told reporters that she had not yet read Mnuchin's letter to Capitol Hill, but she knew that she was going to arrive.
In his letter, Mnuchin called on Congress to restore borrowing power by raising the debt ceiling before the Congress leaves for the August parliamentary holidays.
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