"Based on updated forecasts, there is a scenario where we expire money at the beginning of September before the congress converges," wrote Mnuchin in a letter.
Pelosi and Mnuchin have spoken three times a week in an attempt to skip negotiated budget and debt ceiling negotiations and several sources say that the new standard forecasts have provided an accelerator for these efforts.
Mnuchin and Pelosi are likely to talk again Friday. Pelosi told reporters that she had not yet read Mnuchin's letter to Capitol Hill, but she knew it was coming.
In his letter, Mnuchin at the Congress called to restore the borrowing power by increasing the debt ceiling before the Congress leaves for its regular August trip.