FLAT BROKE

U.S. Could Hit Debt Ceiling as Soon as June 1, Treasury Department Says

Shortly after the warning, President Joe Biden extended an invitation to congressional leaders to come to the White House next week.

Treasury Secretary Janet Yellen issued a stark warning to Congress on Monday, saying that the United States could default on its $31.4 trillion in debt as early as next month if action is not taken soon. “After reviewing recent federal tax receipts, 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 wrote in a letter addressed to House Speaker Kevin McCarthy. Shortly after the note was delivered, the White House confirmed that President Joe Biden had invited the top four congressional leaders to a meeting next Tuesday to discuss the debt ceiling. Yellen noted that it was impossible to pinpoint an exact date on which the government would run out of cash to pay its bills. Still, she wrote, if “Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.”