Not raising the debt limit in a “timely manner” could pose a substantial risk to the financial system and the broader U.S. economy, according to minutes from the May Federal Open Market Committee (FOMC) policy meeting.
FOMC participants assessed the Treasury Department’s forecast that the federal government would be unable to fully satisfy its obligations as early as June 1 without a debt limit increase or suspension. But the minutes revealed that the projected X-date may happen later than Secretary Janet Yellen’s projected deadline.
“The actual date this event would occur might come a number of weeks later,” the minutes stated….