U.S. Treasury faces looming cash shortage as debt ceiling negotiations continue.
The US Treasury Department has asked federal agencies if they can delay upcoming payments as senior Biden officials search for ways to conserve cash and prevent the US government from facing an unprecedented default. Without additional borrowing, a fresh burst of tax revenue or new ways to slow spending, the federal government expects to miss a payment for the first time in modern history in early June. The White House is looking for ways to buy more time for President Biden and House Speaker Kevin McCarthy to cut a deal to raise the federal debt ceiling, which sets a legal limit on government borrowing.