US Debt Default Looms as Treasury Cash Reserves Run Low.

The Congressional Budget Office (CBO) has warned that the US could reach its debt limit as soon as early June, which could lead to a fiscal crisis. However, the exact timeline is uncertain due to lower-than-expected federal tax collections. President Biden and House Speaker Kevin McCarthy have been in talks to raise the debt ceiling, but Republicans are refusing to do so without massive spending cuts. The lack of a hard deadline has led to acrimony and distrust between the two parties, and negotiations are ongoing. The possibility of a short-term extension in the debt ceiling has been raised, but Republicans are insisting on key policy concessions.