a payment default is possible from June 1, warns the Treasury Secretary

The United States could be in default of payment as of June 1, if no agreement is reached in Congress to raise the debt ceiling, again alerted, Monday, May 15, the Secretary of the Treasury, Janet Yellen, making updated data status.

This date of June 1 had been published at the beginning of May, and was maintained on Monday, “with additional information now available”, Janet Yellen said in a letter to Republican House Leader Kevin McCarthy. He is due to meet President Joe Biden on Tuesday to try to reach an agreement on the debt ceiling.

Meeting with opposition leaders

In this letter sent, Treasury Secretary Janet Yellen indicates that “The Treasury will likely no longer be able to meet all of the government’s obligations if Congress has not acted to raise or suspend the debt limit in early June, and potentially as early as June 1.” She said the Treasury Department will release an update to that date next week.

Joe Biden’s Minister of Economy and Finance also, in the letter, urged Congress to quickly seal a deal, noting that‘”waiting until the last minute (…) can cause serious damage to companies and consumer confidence, increase short-term borrowing costs for taxpayers, and hurt America’s credit rating.”