U.S. Treasury Secretary Yellen says debt limit could be reached by June

WASHINGTON, D.C. (CNN) – Treasury Secretary Janet Yellen said Monday that the U.S. could default on its debt as soon as June 1st if Congress doesn’t act soon.

In a letter to House Speaker Kevin McCarthy, Yellen said the federal government will be “unable to satisfy” its obligations come early June and urged Congress to raise or suspend the debt limit before then.

Yellen said that it’s impossible to give an exact date, but noted that past debt limit impasses have shown that waiting until the last minute can cause serious harm, including damage to business and consumer confidence as well as increased short-term borrowing costs for taxpayers.

Yellen said it also makes the U.S. vulnerable in terms of national security.

In the wake of Yellen’s comments, President Biden called all four congressional leaders, including McCarthy to meet with him on May 9th to discuss the debt limit. That’s according to two sources familiar with the matter.

The White House is maintaining its position that it will not negotiate over the debt ceiling.