Treasury Secretary Janet Yellen Urges Congress to Raise Debt Limit by June 1 or Risk Defaulting on Government Debt

Treasury Secretary Janet Yellen has issued a stark warning to Congress, urging them to raise the debt limit by early June or risk defaulting on the government’s AAA-rated debt. Yellen noted that without action, Treasury will no longer be able to satisfy all of the government’s obligations as early as June 1.

House Speaker Kevin McCarthy (R-Calif.) had his third face-to-face meeting with President Joe Biden in less than two weeks to discuss the need to raise the debt limit. McCarthy said the meeting was productive, but did not point to any specific signs of progress.

Yellen’s warning comes as the Treasury Department is running out of borrowing room. Without action, the government will be unable to pay its bills and will default on its debts. Yellen urged Congress to act quickly, noting that the deadline is just 10 days away.

The White House and congressional Republicans are continuing to negotiate a path to avoid defaulting on the government’s debt. It is unclear whether Congress will be able to reach an agreement in time to meet the June 1 deadline.

The Treasury Secretary’s warning serves as a reminder of the urgency of the situation. Without action, the government will be unable to pay its bills and will default on its debts. It is now up to Congress to take action and ensure that the government is able to meet its obligations.