Deadline to Extend Debt Ceiling or Face U.S. Default Could be as Early as June 1, Treasury Department Warns

The United States Treasury Department has issued a warning that the deadline to extend the debt ceiling or face the first U.S. default could be as early as June 1. Treasury Secretary Janet Yellen wrote in a letter to Congress that the government’s obligations may not be able to be met by early June, and potentially as early as June 1, if the debt limit is not raised or suspended.

Analysis from Moody’s Analytics has revealed that tax receipts have been weaker than expected, leading to the revised timeline. Yellen warned that the government’s obligations may not be able to be met by early June, and potentially as early as June 1, if the debt limit is not raised or suspended.

The debt ceiling is the legal limit on the amount of money the government can borrow. It is currently set at $20.5 trillion, and Congress has to raise or suspend the limit in order to avoid defaulting on the government’s obligations.

The Treasury Department is urging Congress to act quickly in order to avoid a self-inflicted crisis. Yellen wrote in her letter that “failure to act would have catastrophic economic consequences for every American.”

The Treasury Department is continuing to monitor the situation and will provide updates as needed. It is unclear at this time how Congress will address the issue, but the Treasury Department is urging them to act quickly in order to avoid a self-inflicted crisis.