Key Points
- Treasury Secretary Janet Yellen notified Congress that the U.S. will reach its statutory debt limit next Thursday, and asked House Speaker Kevin McCarthy to either suspend or increase the debt limit.
- Yellen wrote that the Treasury Department will begin “taking certain extraordinary measures to prevent the United States from defaulting on its obligations.”:
- She told McCarthy, “It is unlikely that cash and extraordinary measures will be exhausted before early June.”
- “Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability,” Yellen warned.
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