US debt default looms as Yellen confirms possible June 1 deadline

US Treasury Secretary Janet Yellen has warned that the US may default on its obligations as soon as June 1 if Congress doesn't act to raise or suspend the debt limit. President Joe Biden is optimistic about negotiations with House Republicans and is expected to meet with congressional leaders on Tuesday. Yellen urged Congress to act as soon as possible, noting that Treasury's borrowing costs have increased substantially for securities maturing in early June. Negotiators have been able to pinpoint some areas on which congressional staff and the White House can find common ground, including revising the permitting process, rescinding unspent Covid-19 relief funds, and potentially cutting spending.