US may default on June 1, Yellen reaffirms

(CNN) If Congress doesn’t act, it still looks like the U.S. could default as early as next month — possibly as early as June 1 — Treasury Secretary Janet Yellen reiterated Monday.

The looming deadline puts more pressure on House Republicans and the White House to bridge and address their differences. Loan ceiling In the coming days. President Joe Biden is expected Meet again Tuesday with House Speaker Kevin McCarthy and other top congressional leaders.

“I am writing to note that with additional information now available, we estimate that the Treasury will not be able to meet all of the government’s obligations if Congress does not act to raise or suspend the debt ceiling by early June. Effective June 1,” Yellen wrote to McCarthy.

However, the actual date could be several days or weeks away, Yellen said, depending on how much revenue the federal government collects and how much is due in the coming weeks. He will update Congress next week as more information becomes available.

Yellen’s missive comes two weeks after she warned that the U.S. could face a so-called ex-date, a default. June 1st soon. That sparks an accelerated schedule A meeting last week For months, talks between Biden and four congressional leaders stalled.

Many forecasters thought the Treasury would be able to use the cash to continue paying its bills “Extraordinary Activities” Until late summer. But this year’s weak tax collection pushed up the date.

Yellen again urged Congress to act quickly, raising the Treasury’s borrowing costs significantly for bonds maturing in early June.

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“We have learned from past credit limit impasses that waiting until the last minute to suspend or increase the credit limit can seriously harm business and consumer confidence, increase short-term borrowing costs for taxpayers and negatively impact the credit rating of the United States,” he wrote.

This story has been updated with additional information.

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