Yellen 'Hopeful' Of Resolution For Debt Ceiling Impasse; 'Maybe This Time Is More Difficult'

Treasury Secretary Janet Yellen said on Saturday that the current debt ceiling crisis could be more difficult to navigate through but expressed hope that a solution will soon be reached.

What Happened: "It's certainly not a positive for relationships and standing in the world and credibility," Yellen reportedly told Reuters on the sidelines of the meeting of finance officials of G-7 nations in Japan.

"Maybe this time is more difficult, but I'm hopeful that this one will end in the same way others have, namely that we will find a solution. That's what we're focused on," she added.

The fact that "pretty much everyone" who attended the meeting hosted by President Joe Biden with Congressional leaders on Tuesday agreed that it is unacceptable for the U.S. to default is a positive sign, the Treasury Secretary said.

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What's Next: Yellen was quoted as saying by Bloomberg on Friday that the timing of when the government will run out of money wasn't clear yet. Previously, she said a default could occur as early as June 1 if the debt ceiling wasn't raised or suspended.

Congressional Budget Office released a new report on Friday that highlighted a "significant risk" of a default in the first two weeks of June. The government forecaster said if the Treasury’s cash and extraordinary measures are adequate to finance the government until June 15, potential quarterly tax receipts and extraordinary measures will likely keep the government from defaulting at least until the end of July.

President Biden will likely to engage in more discussions with Republican lawmakers next week to resolve the issue.

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