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U.S government will run out of money by 0ctober 18 says Treasury Secretary.

U.S government will run out of money by 0ctober 18 says Treasury Secretary.

The United States Treasury Secretary Janet Yellen has warned the U.S government is at risk of running out of money by October 18.

According to Peoples Gazette, Ms Yellen’s warnings came as Republicans in the Senate opposed an increase in the borrowing limit.

“At that point, we expect the Treasury would be left with very limited resources that would be depleted quickly,” she said in a letter to Congress. “It is uncertain whether we could continue to meet all the nation’s commitments after that date.”

She also repeated the warnings when testifying before the Senate banking committee, she said by default “would undermine confidence in the dollar as the reserve currency, and the interest payments of ordinary Americans on their mortgages and their cars and their credit cards would all go up in line with higher Treasury borrowing costs.”

On Monday, Republicans in the Senate voted against a bill slated to raise the U.S. borrowing limit.

The bill was supposed to extend for the American government as current funds are projected to run out by September 30. The bill would have extended funding to keep the government open till early December.

According to Financial Times, the president of the Federal Reserve Bank of New York, John Williams, explained that investors could become “extremely nervous,” leading to an “extreme kind of reaction in markets.”

In the event of lawmakers failing to decide the matter, Moody’s Analytics projected a loss of nearly six million jobs and volatility in stock prices, also projecting a halt in paying federal workers, healthcare benefits, military salaries, tax refunds, and social security checks.

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