Janet Yellen warned Congress that the US could default on its debt by June 1st if the nation’s borrowing authority is not raised.
- The Congressional Budget Office also reported that it saw a greater risk of the US running out of funds in early June due to less-than-expected tax receipts.
Even if Congress raises the debt limit before a default occurs, the uncertainty could raise borrowing costs and add other financial stress.
- The result leads to a weakened labor market and our standing on the world stage falling.
- Additionally, while Russia’s invasion of Ukraine remains a burden on U.S. economic growth, Treasury officials say the debate over the debt ceiling poses the greatest risk to the U.S. financial position.