Yellen warns of potential US default by June 1.
Treasury Secretary Janet Yellen has warned Congress that the US could default on its debt as early as June 1 if legislators do not raise or suspend the nation’s borrowing authority before then. The Congressional Budget Office has also reported a greater risk of the US running out of funds in early June. Yellen urged congressional leaders to act as soon as possible to address the $31.4tn limit on its legal borrowing authority to protect the full faith and credit of the United States and avoid a potential global financial crisis.