U.S. Treasury says bank stability actions have not changed debt ceiling ‘X-date’ By Reuters

© Reuters. FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023.  REUTERS/Kevin Lamarque/File Photo

WASHINGTON (Reuters) – The U.S. Treasury’s actions to protect depositors in failed banks SVB Financial and Signature Bank (NASDAQ:) will not affect the date on which the Treasury may no longer be able to pay all U.S. obligations without a debt limit increase, a department spokesperson said on Tuesday.

Asked whether a record $40 billion draw by the Federal Deposit Insurance Corp from the Treasury General Account on Friday could bring the so-called “X-date” closer, the spokesperson said in an emailed statement to Reuters: “The actions we have taken to protect depositors and the stability of the banking system have not affected the X-date for the debt limit.”

The Treasury has not revised its forecast that it will be able to pay U.S. obligations at least through early June, despite predictions from the Congressional Budget Office and private forecasters that Treasury’s cash balances and extraordinary cash management measures may last until September without action by Congress to raise the debt ceiling.