Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Yellen warns U.S. could default as soon as June 1

AuthorYasin Ebrahim
Published 05/01/2023, 04:49 PM
Updated 05/01/2023, 05:14 PM
© Reuters.

Investing.com -- Treasury Secretary Janet Yellen on Monday warned that the United States could run out of cash and default on its debt repayments as early as June 1, should the government fail to raise the debt limit.

"Our best estimate is that we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," Yellen said in a letter to House Speaker McCarthy.

The June 1 warning is earlier than some on Wall Street had expected, with late July previously touted as a potential deadline. 

“We maintain our base case that the debt limit deadline will be in late July, now with increased confidence as revenues are once again close to our projections,” Goldman Sachs said in a note last week.

 
Efforts to find a resolution to raise the debt ceiling have been held up by political wrangling. President Joe Biden has made it clear that he won't back any debt ceiling legislation that includes sizable cuts to domestic programs. 
 
Last week, House Republicans narrowly passed a bill, known as the Limit, Save, Grow Act, that seeks to raise the debt ceiling, but cut federal government spending. 

Latest comments

Didn't she just finish saying the financial markets are 'sound'
Everybody just hold on here for a minute .... Sleepy Joe has extended an invite to a pow-wow at his his place to discuss the matter with some real important folks next week, after his nap of course, so  everything is gonna be just dandy. Ms. Janet is just trying to whack the Bee Hive with her walking cane again so everyone can take notice of impending doom. Just go about your business. All is good.
funny!! lol
Grandma Yellen and Sleepy Joe Biden..so cute together, but hardly instilling confidence in the financial markets
maket cheers today by 1000 point up on US government default
It's not even an option to not raise it. Why even a fake debate about it? :)
agree. there is no option with fed. they have to hike rate. it's poor government administration
us market going to crash for sure. it's definitely recession
I agree with her. govt has solve frc problem if they have money. they have not request jpm to resolve frc issue now jpm in trouble
she too old should be fired . get younger generation
Yellen is a liar. Default even in a shutdown is not currently possible. Enough tax revs are coming in to service the debt. The govt doesnt stop collecting money.
omg US economy default
market will cheers on us economy default
To solve such financial problems, just close your eyes and simply follow the Leader, ie., India.
This story happens every year . Senators and House should solve this . Ordinary person need nit worry .
They are running out of money faster than expected, so are they spending money faster while they are running out of money?
maybe they should just schumpeter it out
America where all is false.
C'mon man MMT.  Magic Money Tree
Do people still believe this charade. By now everyone should know the US is spending monopoly money. They just print whatever they want but put up this charade to convince people they're spending hard earned money.
Here comes volatilty, get ready.
Go away please
🤣🤣🤣🤣 I don't subscribe to this dog and pony show, I just live her.
Poor Yellen, she is repeating this same sentence every month and every year, since world war 2 I guess 😂😂
butcut? federal government
K.... why didn't the democrats raise it more last time? so they could make it a bad republican thing?
It’s a flimsy dramtics every year. They just have to print debt knstrments and sell raising limits year afyer year that US will eventialy not be able to repay
When you're so excited to spread FUD, you skip spell check.
They're facts. Even if he's excited
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.