"Based on updated projections, there is a situation where we run cash in early September, before Congress returns," Mnuchin wrote in a letter.
Pelosi and Mnuchin spoke three times this week in an effort to utilize budget negotiations and debt debt, and many sources have said that new default displays provide an accelerant for efforts that.
Mnuchin and Pelosi are likely to speak again Friday. Pelosi told reporters that he had not read Mnuchin's letter on Capitol Hill but he knew it would come.
In his letter, Mnuchin called on Congress to return the borrowing power by increasing the debt ceiling before Congress closed for a regular August recess.