Biden ‘optimistic’ for debt ceiling deal after new date

Treasury Secretary Janet Yellen on Friday issued a new letter to Congress estimating that the federal government may not be susceptible to operating out of cash to pay all its expenses till June 5 — reasonably later than the company’s earlier estimate of once June 1.

“Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government’s obligations if Congress has not raised or suspended the debt limit by June 5,” Yellen wrote.

Republicans wondered Yellen’s technique, with some accusing her of “manipulation tactics.”

“June 5? Yellen said it was June 1 earlier this WEEK. Republicans won’t be intimidated by her manipulation tactics,” tweeted Rep. Andy Biggs.

“Will the media join our efforts to demand Janet Yellen show her work? I have been asking for three months,” said Rep. Bob Good.

As he headed to Camp David on Friday night time, President Joe Biden sounded constructive about negotiations and hopeful that extra growth will come into the evening.

“There’s a negotiation going on. I’m hopeful we’ll know by tonight whether we are going to be able to have a deal,” Biden stated

“Things are looking good. I’m very optimistic. I hope we’ll have some clear evidence tonight before the clock strikes 12 that we have a deal, but it’s very close. And I’m optimistic,” he added.

Rep. Patrick McHenry, a key GOP negotiator, agreed with Biden’s feedback {that a} deal could be very shut.

“I would concur,” he stated on his means into Speaker Kevin McCarthy’s place of work Friday evening.

“Everybody wants to look for the white smoke. We are not in that stage yet. So, you have to have an agreement, an agreement on the agreement, which is like the complicated part. You all know waiting around for you know the final bit of agreements is the hardest, longest wait and why we have all these gaps, and we have to go work through language,” McHenry stated.

McHenry stated Biden’s remarks “are a hopeful sign to me that I’ve rarely used that term in the last 12 days that I’ve been involved in this. So, hopeful sign that the President is saying those things, that tells me his White House team might be in a better disposition than what we’ve seen in previous days.”

The replace buys much-needed time for negotiators to hammer out a deal to boost the debt prohibit and keep away from a disastrous default. The so-called “X-date” when the U.S. will run out of price range so that you can pay all its expenses in complete and on time has all the time been fluid, in line with day by day federal tax revenues and expenditures.

Lawmakers left Washington for Memorial Day recess with out a deal in hand. McCarthy and Biden in contemporary days have stated growth is being made however there’s nonetheless no ultimate compromise between each side.

ABC News Senior Congressional Correspondent Rachel Scott has reported negotiators are eyeing a imaginable deal to boost the debt prohibit and building up protection and veteran spending for two years whilst additionally clawing again unspent COVID-19 price range.

But key hang-ups within the talks seem to be spending ranges and paintings necessities.

Meanwhile, Yellen’s letter comes because the Treasury Department’s money reserves are operating dangerously low.

New Treasury information presentations its money stability dwindled to only $39 billion on the finish of the day Thursday. This is down from kind of $60 billion on the finish of final week – and $316 billion firstly of the month.

The Treasury additionally launched information appearing it holds kind of $67 billion in “extraordinary measures” it could use.

In her letter, Yellen famous that greater than $130 billion of bills are scheduled within the first two days of June, together with to Veterans and Social Security and Medicare recipients.

“These payments will leave Treasury with an extremely low level of resources,” she wrote.

ABC News’ Lauren Peller contributed to this file.