Yellen says June 5 is last date for US debt ceiling to be raised
US Treasury Secretary Janet Yellen said on Friday the government would run short of money to pay its bills on June 5, which would trigger a potentially calamitous default, unless Congress raises the US$31.4 trillion (S$42 trillion) debt ceiling.
Ms Yellen’s announcement allows a little more time for Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy to reach an accord to raise the federal government’s self-imposed borrowing limit.
Previously, the Treasury had said the deal needed to be reached as soon as June 1.
Representative Patrick McHenry, one of the Republican negotiators, said they could meet the June 5 deadline.