{"id":20463,"date":"2023-05-02T02:24:28","date_gmt":"2023-05-02T02:24:28","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/treasury-secretary-yellen-warns-us-could-default-on-its-debt-by-june-1-economics-bitcoin-news\/"},"modified":"2023-05-02T02:24:28","modified_gmt":"2023-05-02T02:24:28","slug":"treasury-secretary-yellen-warns-us-could-default-on-its-debt-by-june-1-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/treasury-secretary-yellen-warns-us-could-default-on-its-debt-by-june-1-economics-bitcoin-news\/","title":{"rendered":"Treasury Secretary Yellen Warns US Could Default on Its Debt by June 1 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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U.S. Treasury Secretary Janet Yellen has warned that the Treasury will not be able to pay all of the government\u2019s debt \u201cas early as June 1, if Congress does not raise or suspend the debt limit before that time.\u201d Yellen also cautioned that the U.S. defaulting on its debt obligations \u201cwould produce an economic and financial catastrophe.\u201d<\/strong><\/p>\n

U.S. Debt Default Could Happen by June 1, Says Yellen<\/h2>\n

United States Secretary of the Treasury Janet Yellen warned Monday that the U.S. government may default on its debt by June 1, which is earlier than the government and Wall Street had expected. In a letter to House Speaker Kevin McCarthy, Yellen wrote:<\/p>\n

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After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government\u2019s obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time.<\/p>\n<\/blockquote>\n

She clarified that the Treasury Department\u2019s estimate of when it could default on the government\u2019s debt obligations is \u201cbased on currently available data,\u201d noting that \u201cIt is impossible to predict with certainty the exact date when Treasury will be unable to pay the government\u2019s bills.\u201d<\/p>\n

However, she stressed that based on the current projections, \u201cIt is imperative that Congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments.\u201d<\/p>\n

Emphasizing that \u201cwaiting until the last minute\u201d to take action \u201ccan cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,\u201d Yellen warned:<\/p>\n

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If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.<\/p>\n<\/blockquote>\n

Congressional Budget Office Similarly Estimates U.S. Debt Default Could Happen in June<\/h2>\n

The Congressional Budget Office (CBO) has also revised its estimate of when the U.S. government could default on its debt obligations. The federal agency announced Monday:<\/p>\n

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Because tax receipts through April have been less than the Congressional Budget Office anticipated in February, we now estimate that there is a significantly greater risk that the Treasury will run out of funds in early June.<\/p>\n<\/blockquote>\n

On Monday, President Joe Biden called McCarthy and three other congressional leaders \u2014 Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, and House Democratic Leader Hakeem Jeffries \u2014 to invite them to a meeting on May 9 at the White House to discuss the debt limit, a White House official told NBC.<\/p>\n

Yellen warned last week that the U.S. defaulting on its debt obligations \u201cwould produce an economic and financial catastrophe,\u201d emphasizing that it \u201cwould raise the cost of borrowing into perpetuity\u201d and \u201cfuture investments would become substantially more costly.\u201d<\/p>\n

What do you think about Treasury Secretary Janet Yellen\u2019s warning that the U.S. government could default on its debt obligations as soon as June 1? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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