Yellen says again Treasury will run out of cash by June 1

US Treasury Secretary Yellen speaking in a CNBC intervew

• Says our projection is that as early as June 1 treasury will run out of cash and extraordinary measures to pay government's debts
• Something has to give, it's essential that Congress raise debt ceiling
• Default would be 'huge hit' to u.s. Economy
• If congress doesn't raise debt ceiling, president biden will have to make decisions on what to do with resources, but there are no good options
• Doesn't want to discuss or rank options
• Default would have 'tremendously adverse effects' on financial markets and economy
• Clearly there is a big gap between the president's position and that of Republicans on debt ceiling
• Republican spending proposals are 'draconian'

More:

• We need to have discussions and compromise over fiscal policy in normal budget process, but not with 'a gun' to the head of American people
• Only option that leaves financial system, economy in good shape is raising the debt ceiling
• Compromising credit rating of u.s. Or default would have adverse impact on u.s. Dollar as reserve currency
• We continue to see downward pressure of some regional, community banks
• Government intervened forcefully to reassure deposit holders and to improve liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term to banks, banks now have stable deposits
• Regulators stand ready to use same tools as in the past if pressures on banks could lead to contagion
• Diversity in banking system is a real strength, regional banks create competition
• Treasury reviewing FDIC report on uninsured deposits
• Stand ready to work with congress to see if there needs to be changes to federal deposit insurance
• Believe there is adequate capital and liquidity in u.s. Banking system
• SEC could take against market manipulation if it was found
• Controls on short selling are a matter for the SEC, there is a high bar for such controls