US Treasury Secretary Janet Yellen listens during a signing ceremony for the Indonesia Infrastructure and Finance Compact, at the International Monetary Fund (IMF) headquarters in Washington, DC, on April 13, 2023.
Stefani Reynolds | AFP | Getty Images
WASHINGTON — Treasury Secretary Janet Yellen on Monday warned that the United States may run out of measures to pay its debt obligations by June 1, earlier than the government and Wall Street had been expecting.
In a letter to House Speaker Kevin McCarthy, Yellen said new data on tax receipts forced the department to move up 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.”
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The letter adds a new sense of urgency to stalled negotiations between President Joe Biden and McCarthy’s Republican majority in the House.
The White House has so far refused to participate in talks as long as McCarthy is still linking a debt ceiling vote to sweeping cuts to federal spending.
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