Bipartisan Policy Center: US at higher risk of debt default between June 2 and June 13

The United States is at a higher risk of defaulting on its debt between June 2 and June 13, the Bipartisan Policy Center said Tuesday.

The think tank projected the so-called X-Date — when the Treasury Department is set to run out of cash — would fall between early June and early August, but noted “an elevated risk” of default in early June.

The timeline is “materially” impacted by the level of tax revenue the government is able to bring in this month “before a projected influx of quarterly tax receipts around June 15”, it points out.

“If revenues can sustain operations through that date, Treasury would likely be able to forestall default through the crucial date of June 30, when approximately $145 billion in one-time, additional extraordinary measures become available by suspending investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund,” the group adds.

“In such a scenario, the additional room created by these measures would support Treasury’s ability to make good on our obligations through at least early July and perhaps several weeks beyond,” the Washington-based group stresses.

Treasury Department Secretary Janet Yellen warned earlier this week that, absent congressional action, the nation is still on track to potentially default on its debt as soon as June 1.