Treasury Secretary warns US government will run out of money by October 18 2 weeks ago

Treasury Secretary warns US government will run out of money by October 18

"This uncertainty underscores the critical importance of not waiting to raise or suspend the debt limit."

US Treasury Secretary Janet Yellen has warned that the federal government will likely run out of cash by October 18 unless Congress in the country raises the debt ceiling.

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"It is uncertain whether we could continue to meet all the nation's commitments after that date," Yellen wrote in a letter seen by CNN.

"It is important to remember that estimates regarding how long our remaining extraordinary measures and cash may last can unpredictably shift forward or backward," Yellen added.

"This uncertainty underscores the critical importance of not waiting to raise or suspend the debt limit. The full faith and credit of the United States should put at risk."

The publication added on Tuesday that the projection is based on estimated tax payments.

The Secretary added that the October 18 deadline is only an estimate, however, it is not the first warning of its kind in recent months.

The US now faces a threat of defaulting on its debt in a matter of weeks which could lead to tanked markets and a delay of payments to millions of Americans with Republicans in the Senate blocking a bill that would have suspended the debt limit on Monday.