BREAKING: There is 'significant risk' the U.S. will default on its debt sometime in the first two weeks of June, the Congressional Budget Office warns.
as the month where the U.S. would no longer be able to meet its financial obligations.
Treasury Secretary Janet Yellen previously warned that a default could happen as soon as June 1, though Yellen has acknowledged there is considerable uncertainty around the exact "x-date." The new CBO assessment underscores the tight timeline lawmakers are facing to reach a deal to lift the debt ceiling, or risk an unprecedented default that analysts have warned would wreak havoc on the economy.
If the Treasury can continue financing the government through June 15, the CBO said expected quarterly tax receipts and other measures "will probably allow the government to continue financing operations through at least the end of July."on Sunday, urged Congress to find a solution before Treasury runs out of tools to pay all its bills.
"We have been using extraordinary measures for several months now. And our ability to do that is running out," Yellen said. "And we will start to run down our cash and our current projection is that in early June a day will come when we’re unable to pay our bills unless Congress raises the debt ceiling."
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