5 things to know this week

NAFCU’s widely read NAFCU Today is credit union leaders’ go-to source for the latest on issues impacting the credit union industry. For those short on time, here’s a roundup of this week’s top need-to-know updates and resources.

Yellen: June 1 is worst case scenario for debt default 

Treasury Secretary Janet Yellen announced the government could hit its debt limit much sooner – June 1 – than previously anticipated. The Republican-controlled House last week passed its bill to increase the limit, while cutting funding and creating restrictions for various programs, but Democrats and the Biden Administration called it a non-starter. President Joe Biden is expected to meet with majority and minority leaders of the House and Senate May 9 to discuss a possible solution.

In Yellen’s letter to congressional leaders, she noted that “[i]t is impossible to predict with certainty the exact date when Treasury will be unable to pay the government’s bills, and I will continue to update Congress in the coming weeks as more information becomes available. Given the current projections, it is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments.”

 

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