"US to May Be Unable to Pay Bills by June 1": Secretary of Treasury Yellen

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On Monday, May 1, Secretary of the Treasury Janet Yellen sent a letter to Speaker of the House Kevin McCarthy in which she voiced her concerns about an approaching date by which the government would potentially be unable to pay its financial obligations.

"Our best estimate is that we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," the letter said.

The U.S. government has been spending more than it takes in in revenue for many years now, and it must thus borrow money to meet its obligations. But raising the limit of how much it may borrow is subject to a vote in Congress.

House Republicans have refused to raise the limit without deep spending cuts attached, and this has led to a stalemate in negotiations.

In his response, McCarthy said, "After three months of the Biden administration's inaction, the House acted, and there is a bill sitting in the Senate as we speak that would put the risk of default to rest."