The U.S. government could avoid defaulting on its debt through July if the Treasury Department can receive enough revenue in June, according to the Congressional Budget Office (CBO).
The agency stated in its updated guidance that if the government can collect enough tax revenue and the Treasury continues employing its extraordinary measures, it “will probably allow the government to continue financing operations through at least the end of July.
But Washington still faces a “significant risk” of defaulting on its debt in the first two weeks of June, with CBO officials warning that the federal government may no longer be able to cover all its obligations after the middle of June….