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Ben Levisohn, Jack Hough and Carleton English discuss the impact of debt negotiations on the markets, Foot Lockers shares and earnings performance as well as the resignation of Morgan Stanleys CEO James Gorman.

The Treasury Deptartment is expected to run out of the cash necessary to fund the federal government’s obligations by June 8 or 9 unless the debt ceiling is lifted, according to a report by Goldman Sachs.

Since the U.S. ran up against its $31.4 trillion debt limit in January this year, the Treasury has been using "extraordinary measures" which are accounting maneuvers that involve shifting funds between certain accounts to pay the government’s bills. Treasury is only able to use the extraordinary measures so long as balances in those accounts remain above $30 billion, at which point it can no longer fulfill all the federal government’s obligations.

Negotiators representing the Biden administration and congressional Republicans have been operating under the assumption June 1 will be the date on which Treasury exhausts its extraordinary measures, which could give lawmakers extra time to finalize a deal if the June 8 or 9 estimate from the Goldman Sachs note pans out. However, the report noted that there’s still a chance June 1 will be the deadline.

"The estimate is subject to substantial uncertainty so there is certainly a chance that receipts could slow more than expected and leave the Treasury short of cash by June 1 or 2," Goldman economists Alec Phillips and Tim Krupa wrote in the note to clients, which Bloomberg first reported.

YELLEN SAYS ODDS OF US PAYING ALL ITS BILLS BY JUNE 15 IS ‘QUITE LOW’ AS DEBT CEILING DEADLINE LOOMS

A report by a pair of economists from Goldman Sachs indicates the Treasury may have until June 8 or 9 until it’s unable to pay all the government’s obligations. (Fox News)

The Goldman Sachs economists noted that on Thursday last week, Treasury’s cash balance was at a little more than $57 billion after it had about $92 billion the day before. The Treasury's cash balances ebb and flow day-to-day based on incoming tax receipts and spending levels as federal bills come due, but the extraordinary measures will eventually be tapped out.

"We are confident that Congress will avoid going past the deadline without action, but there are many paths this could take," wrote the economists, who assigned a 30% chance of the two sides agreeing to a deal this week, along with a 30% chance of a deal "shortly before" the deadline is reached.

"While we expect a deal to occur ahead of the deadline, we also expect a few more twists along the way, and suspect that markets are likely to price in additional risk before the debt limit is finally raised," they explained.

DEBT CEILING DEADLINE IS CLOSER THAN PREVIOUSLY EXPECTED – HERE’S WHY

Treasury Secretary Janet Yellen has said the debt limit needs to be increased by June 1 or the U.S. will face difficult choices about which bills to pay. (Drew Angerer/Getty Images / Getty Images)

Treasury Secretary Janet Yellen said Sunday during an interview on NBC’s "Meet the Press" the likelihood of the U.S. making it to mid-June without the Treasury exhausting its extraordinary measures is "quite low" and that June 1 remains the hard deadline.

"And my assumption is that if the debt ceiling isn’t raised, there will be hard choices to make about what bills will go unpaid," Yellen added without going into specifics.

Senate Minority Leader Mitch McConnell (R-Ky.), Speaker of the House Kevin McCarthy (R-Calif.) and President Joe Biden, meet with other lawmakers in the Oval Office of the White House to discuss the debt limit on May 9, 2023. (Anna Moneymaker/Getty Images / Getty Images)

Negotiations between President Biden and House Speaker Kevin McCarthy, R-Calif., have picked up over the last week after weeks of little movement as the two sides press to strike a deal that staves off the fast-approaching threat of default. 

House Republicans want to see a deal that contains spending caps, particularly on non-defense discretionary spending, while Democrats have been reluctant to agree to budget cuts.

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Biden and McCarthy are scheduled to meet Monday when the president returns from a trip to Japan for the G-7 that was cut short due to the state of negotiations, while staffers from the two sides will meet Sunday night. 

McCarthy has said that a deal in principle would likely need to be reached this weekend to give Congress enough time to turn the deal into legislative text and pass the bill through the House and Senate ahead of the June 1 deadline.

FOX Business’ Stephen Sorace contributed to this report.

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‘Special’ Schlittler stars as Yankees oust Red Sox

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'Special' Schlittler stars as Yankees oust Red Sox

NEW YORK — Rookie right-hander Cam Schlittler struck out 12 in eight dominant innings and the New York Yankees beat the Boston Red Sox 4-0 on Thursday night to win their AL Wild Card Series in a deciding third game.

Taking his place in Yankees-Red Sox rivalry lore, the 24-year-old Schlittler overpowered Boston with 100 mph heat in his 15th major league start and pitched New York into a best-of-five division series against American League East champion Toronto beginning Saturday.

“A star is born tonight. He’s a special kid, man,” Yankees manager Aaron Boone said. “He is not afraid. He expects this.”

Amed Rosario and Anthony Volpe each had an RBI single in a four-run fourth as New York became the first team to lose the opener of a best-of-three wild-card series and come back to advance since Major League Baseball expanded the first round in 2022.

“It felt like the most pressure-packed game I’ve ever experienced — World Series, clinching games, whatever,” Boone said.

Schlittler, who debuted in the majors July 9, grew up a Red Sox fan in Walpole, Massachusetts — but has said several times he wanted to play for the Yankees. He had faced Boston only once before, as a freshman at Northeastern in a 2020 spring training exhibition.

Ex-Yankees great Andy Pettitte gave Schlittler one piece of advice Wednesday: Get a good night’s sleep.

“I woke up and I was locked in, so I knew exactly what I needed to do to go out there, especially against my hometown team,” Schlittler said.

He outpitched Connelly Early, a 23-year-old left-hander who debuted Sept. 9 and became Boston’s youngest postseason starting pitcher since 21-year-old Babe Ruth in 1916.

Schlittler struck out two more than any other Yankees pitcher had in his postseason debut, allowing just five singles and walking none. He threw 11 pitches 100 mph or faster — including six in the first inning, one more than all Yankees pitchers had combined for previously since pitch tracking started in 2008.

Schlittler threw 75 of 107 pitches for strikes, starting 22 of 29 batters with strikes and topping out at 100.8 mph. David Bednar worked around a leadoff walk in the ninth as the Red Sox failed to advance a runner past second base.

Bucky Dent threw out the ceremonial first pitch on the 47th anniversary of his go-ahead, three-run homer for New York at Fenway Park in an AL East tiebreaker game, and the Yankees went on to vanquish their longtime rivals the way they often used to.

New York, which arrived packed for a late-night flight to Toronto, won its second straight after losing eight of nine postseason meetings with Boston dating to 2004 and edged ahead 14-13 in postseason games between the teams. The Red Sox cost themselves in the fourth with a defense that committed a big league-high 116 errors during the regular season.

New York’s rally began when Cody Bellinger hit a soft fly into the triangle between center fielder Ceddanne Rafaela, right fielder Wilyer Abreu and second baseman Romy González. The ball fell just in front of Rafaela, 234 feet from home plate, as Bellinger hustled into second with a double.

Giancarlo Stanton walked on a full count and with one out Rosario grounded a single into left, just past diving shortstop Trevor Story, to drive in Bellinger with the first run.

Jazz Chisholm Jr.’s single loaded the bases, and Volpe hit a grounder just past González, who had been shifted toward second, and into right for an RBI single and a 2-0 lead.

After a catcher’s interference call on Omar Narváez was overturned on a video review, Austin Wells hit a potential double-play grounder that first baseman Nathaniel Lowe tried to backhand on an in-between hop. The ball glanced off his glove and into shallow right field as two runs scored.

“We didn’t play defense,” Boston manager Alex Cora said. “They didn’t hit the ball hard, but they found holes and it happened fast.”

Yankees third baseman Ryan McMahon made the defensive play of the game when he caught Jarren Duran‘s eighth-inning foul pop and somersaulted into Boston’s dugout, then emerged smiling and apparently unhurt.

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Cubs quash Padres’ threat in 9th to make NLDS

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Cubs quash Padres' threat in 9th to make NLDS

CHICAGO — Pete Crow-Armstrong hit an RBI single off a shaky Yu Darvish, and the Chicago Cubs shut down Fernando Tatis Jr. and the San Diego Padres for a clinching 3-1 victory in Game 3 of their NL Wild Card Series on Thursday.

Backed by a raucous crowd of 40,895 at Wrigley Field, Chicago used its stellar defense to advance in the postseason for the first time since 2017. Michael Busch hit a solo homer, and Jameson Taillon pitched four shutout innings before manager Craig Counsell used five relievers to close it out.

“This group’s battle-tested,” Cubs shortstop Dansby Swanson said. “This group can grind it out. This group never backs down from and shies away from anything. This is such an amazing thing to be a part of.”

After Brad Keller faltered in the ninth — allowing Jackson Merrill‘s leadoff homer and hitting two batters with pitches — Andrew Kittredge earned the save by retiring Jake Cronenworth on a bouncer to third and Freddy Fermin on a fly ball to center field.

Next up for Chicago is a matchup with the NL Central champion Brewers in a compelling division series, beginning with Game 1 on Saturday in Milwaukee.

Counsell managed the Brewers for nine years before he was hired by the Cubs in November 2023, and he has been lustily booed in Milwaukee ever since he departed.

“It’s going to be a great atmosphere,” Counsell said. “It’s Cubs-Brewers. That’s going to be as good as it gets. It’s always a great atmosphere when the two teams play each other.”

It was another painful ending for San Diego after it made the postseason for the fourth time in six years but fell short of a pennant again. The Padres forced a decisive Game 3 with a 3-0 victory on Wednesday, but their biggest stars flopped in the series finale.

“There’s a lot of hurt guys in that clubhouse, but we left it all out on the field, and there’s no regrets on anybody’s part,” manager Mike Shildt said. “Just disappointed.”

Tatis went 0-for-4 with three strikeouts, including a fly ball to right that stranded runners on second and third in the fifth. Machado, who hit a two-run homer in Game 2, bounced to shortstop Swanson for the final out of the eighth, leaving a runner at third.

“It’s not fun at all. We definitely missed an opportunity,” Tatis said.

Darvish also struggled against his former team. The Japanese right-hander was pulled after the first four Cubs batters reached in the second inning, capped by the first of Crow-Armstrong’s three hits.

Jeremiah Estrada came in and issued a bases-loaded walk to Swanson, handing the Cubs a 2-0 lead. Estrada limited the damage by striking out Matt Shaw before Busch bounced into an inning-ending double play.

Taillon allowed two hits and struck out four. Caleb Thielbar got two outs before Daniel Palencia wiggled out of a fifth-inning jam while earning his second win of the series. Drew Pomeranz managed the seventh before Keller worked the eighth.

The Cubs supported their bullpen with another solid day in the field. Swanson made a slick play on Luis Arraez‘s leadoff grounder in the sixth, and then turned an inning-ending double play following a walk to Machado.

Crow-Armstrong, who went 0-for-6 with five strikeouts in the first two games, robbed Machado of a hit with a sliding catch in center in the first.

“It’s just the next step for us,” Busch said. “You set out a goal before each and every year to do stuff like this, and you celebrate it, and it’s been fun to celebrate and continue to celebrate it tonight, but there’s a lot of work ahead.”

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Bogaerts laments ‘terrible’ call, pines for ABS

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Bogaerts laments 'terrible' call, pines for ABS

Count Xander Bogaerts among those looking forward to Major League Baseball’s new challenge system for balls and strikes next season.

The San Diego Padres shortstop just wishes it were in place a little earlier.

Bogaerts struck out looking on a pitch that appeared out of the strike zone during the ninth inning of the team’s 3-1 loss to the Cubs in Game 3 of the National League Wild Card Series on Thursday in Chicago.

The call came at a critical time.

The Cubs carried a 3-0 lead into the ninth inning, but Jackson Merrill led off with a home run off Brad Keller to cut San Diego’s deficit to 3-1 and bring Bogaerts to the plate. On a 3-2 count, Keller’s 97 mph fastball appeared to miss the zone low, causing Bogaerts to crouch down in disbelief at the call and Padres manager Mike Shildt to race out of the dugout.

Keller then hit Ryan O’Hearn and Bryce Johnson with pitches. Had Bogaerts walked, the Padres could have had the bases loaded with no outs. Instead, Andrew Kittredge came on with two runners on and one out and retired the next two batters, allowing the Cubs to advance to play the Milwaukee Brewers in the next round.

Bogaerts didn’t mince words after the game when asked about the apparent missed call by plate umpire D.J. Reyburn.

“Talk about it now: What do you want me to do?” Bogaerts said, according to The San Diego Union-Tribune. “It’s a ball. Messed up the whole game, you know? I mean, can’t go back in time, and talking about it now won’t change anything. So it was bad, and thank God for ABS next year because this is terrible.”

The automated ball-strike system will be implemented in the majors next season after years of testing in the minors as well as during spring training and at this year’s All-Star Game. The MLB competition committee voted last month to give teams two challenges per game using ABS if they believe a call by the plate umpire is wrong.

Thursday’s ending soured a 90-win season for San Diego, which made the playoffs for the fourth time in six seasons. It has not made it past the NL Championship Series during this recent run.

“We had a lot of fun,” Bogaerts said. “We competed with each other. We had guys that got injuries, a lot of guys stepped up. We traded for some really great people at the deadline. … It was fun until today.”

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