The Treasury Secretary warns of the risk of default without an agreement to raise the debt ceiling

The US could default starting June 1, if no agreement is reached in Congress to raise the debt ceiling, again alerted Treasury Secretary Janet Yellen on Monday, May 15. The June 1 date was revealed in early May and confirmed on Monday. Additional information now available.Janet Yellen said in a letter to Kevin McCarthy, the Republican leader in the House of Representatives. He is scheduled to meet with President Joe Biden on Tuesday to try to reach an agreement on the debt ceiling.

In this letter, Treasury Secretary Janet Yellen explains “It is likely that the Treasury Department will not be able to meet all of the government’s obligations if Congress does not take action to raise or suspend the debt limit in early June, possibly as early as June 1.” She said the Treasury Department would issue an update on that date next week.

In the letter, Joe Biden’s Minister of Economy and Finance also urged Congress to quickly conclude an agreement, specifying that“Waiting until the last minute (…) can cause serious damage to business and consumer confidence, increases short-term borrowing costs for taxpayers, and hurts America’s credit rating.”.