U.S. Treasury Secretary Janet Yellen has said the department will not be able to satisfy its obligations if the debt ceiling is not raised by June.
In a letter to the House of Representatives on May 22, Janet Yellen warned that it is ‘highly likely’ that the Treasury will not be able to cover government obligations by next month.
The warning comes as the U.S. economy approaches its debt ceiling or debt limit. This is a legislative limit on the national debt the Treasury can incur.
Effectively, it is a limit on how much money the federal government can pay by borrowing more money on the debt it already borrowed.
President Joe Biden and House Speaker Kevin McCarthy ended discussions on May 22 without an agreement on how to raise the debt ceiling. U.S. government debt currently stands at $31.4 trillion, and we are less than two weeks before a potential default.
Gloomy Outlook on Debt Ceiling
Yellen’s outlook was gloomy,…
