The US Is Broke? Debt Default Could Come June 1st

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.

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