Treasury's Yellen says US could default as soon as June 1
May 2, 2023
WASHINGTON - Treasury Secretary Janet Yellen notified Congress on Monday that the U.S. could default on its debt as early as June 1, if legislators do not raise or suspend the nation's borrowing authority before then and avert what could potentially become a global financial crisis.
In a letter to House and Senate leaders, Yellen urged congressional leaders ''to protect the full faith and credit of the United States by acting as soon as possible'' to address the $31.4 trillion limit on its legal borrowing authority. She added that it is impossible to predict with certainty the exact date of when the U.S. will run out of cash.
''We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," Yellen said in the letter.