New estimate finds US could face default on debt by early June if Congress doesn't act

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Treasury Secretary Janet Yellen notified Congress in January that her agency was resorting to 'extraordinary measures' to avoid default.

A deadlock on raising the debt ceiling poses a very real threat to millions of Americans. Here's why.The U.S. could face an unprecedented default on its obligations as soon as early June if Congress does not act to lift the debt limit, a Washington think tank said Wednesday.

"Policymakers have an opportunity now to inject certainty into the U.S. and global economy by beginning, in earnest, bipartisan negotiations around our nation's fiscal health and taking action to uphold the full faith and credit of the United States well before the X-Date," he said. Yellen said her actions will buy time until Congress can pass legislation that will either raise the nation's $31.4 trillion borrowing authority or suspend the limit for a period of time. But she said it's "critical that Congress act in a timely manner."

Treasury first used extraordinary measures in 1985 and has used them at least 16 times since, according to the Committee for a Responsible Federal Budget, a fiscal watchdog.

 

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New estimate U.S. could face default on debt by early JuneThe U.S. could face an unprecedented default on its obligations as soon as early June if Congress does not act to lift the debt limit, a Washington think tank said Wednesday.
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