Janet Yellen Warns of Impending Debt Limit Breach and Consequences

Treasury Secretary Janet Yellen warned House Speaker Kevin McCarthy that the US government will run out of money to pay debts by June 1 if Congress and the president do not reach a debt limit increase. President Biden and McCarthy have been negotiating for weeks, but remain at an impasse. Yellen warned that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.