(Washington, May 11) U.S. Treasury Secretary Janet Yellen stated that it is "reasonably certain" the United States will "likely" reach its debt ceiling during Congress's August recess.
In a letter to House Speaker Kevin McCarthy, she wrote: “I respectfully urge Congress to act to increase or suspend the debt ceiling before the mid-July recess to protect the full faith and credit of the United States.”
She warned that delaying action until the last moment could cause severe adverse consequences for financial markets, businesses, and the federal government.
Yellen emphasized that failing to suspend or raise the debt ceiling would seriously damage the U.S. financial system, undermining the country’s security and global leadership.
The United States exceeded its approximately $36 trillion debt ceiling, authorized by Congress, in January this year, forcing the Treasury to adopt extraordinary measures to avoid a potential government default.