Sec. Yellen warns McCarthy: “Raise the debt limit before June 1 to avoid default.”
As the path to averting a self-inflicted crisis on Capitol Hill remains unclear, Treasury Secretary Janet Yellen said on Monday that the deadline to raise the debt ceiling or risk the first American default could be as early as June 1.
Yellen said in a letter to House Speaker Kevin McCarthy that the department had to advance its estimate of when the Treasury Department “will be unable to continue to satisfy all of the government’s obligations” to “early June, and potentially as early as June 1 if Congress does not raise or suspend the debt limit before that time” due to new data on tax receipts.
Additionally, on Monday, the Congressional Budget Office updated its projection for the “X-date.”
According to the Congressional Budget Office’s director, Phill Swagel, “tax receipts through April have been less than the Congressional Budget Office anticipated in February, and we now estimate that there is a significantly greater risk that the Treasury will run out of funds in early June.”
A renewed sense of urgency was added to the delayed talks between President Joe Biden and McCarthy’s Republican majority in th