Yellen has said: The US could default as early as June 5 without a debt ceiling hike

5/26/2023

Yellen has said: The US could default as early as June 5 without a debt ceiling hike.

On May 15, the U.S. Treasury Department emphasized once again its projection that, barring a hike in the debt limit, it will only be able to honor the U.S. government's financial obligations until June 1. This statement further intensifies the pressure on congressional Republicans and the White House to find a resolution soon.

Janet Yellen, the Treasury Secretary, sent her second letter to Congress in a fortnight, reinforcing the likelihood that the Treasury may be unable to fulfill all U.S. government payments by early June. This could lead to the first-ever U.S. default. Yellen indicated that the debt ceiling might come into effect as early as June 1.

The adjusted date comes in the wake of updated revenue and payment data received since Yellen's May 1 communication to Congress. At that time, she warned that the Treasury might deplete its cash reserves to cover government expenditures by early June, possibly even by June 1. This announcement precedes President Joe Biden's scheduled meeting with House Speaker Kevin McCarthy and an upcoming overseas trip for the President.

Read more: https://unusualwhales.com/news/yellen-warns-of-us-default-june-1st