The United States could default on its financial obligations as early as June 1 unless Congress takes action to raise the nation’s $31.4 trillion debt ceiling, according to Treasury Secretary Janet Yellen.
Yellen announced the news in a letter to House Speaker Kevin McCarthy (R-Calif.) on May 1.
“After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government’s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time,” Yellen wrote.
The secretary had warned Congress on Jan. 13 that a breach of the debt ceiling was days away but would be forestalled by taking “extraordinary measures” to manage the nation’s bills….