WASHINGTON (Pakistan Point News / Sputnik - 02nd May, 2023) The US government will likely begin defaulting on its debt by June 1 if the so-called congressional limit on the country's debt servicing is not raised by then, Treasury Secretary Janet Yellen said on Monday.
"In my January 13 letter, I noted that it was unlikely that cash and extraordinary measures would be exhausted before early June,"� Yellen said in a letter to Kevin McCarthy, speaker of the House, or lower chamber of the US legislative assembly, which has a majority of Republican lawmakers opposed to President Joe Biden's Democratic administration. "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."�
