In the current dispute over raising the debt ceiling between House Republicans and the White House, she informed members of a deadline of June 1 in early May.
If Congress does not raise or suspend the debt ceiling before that time, the Treasury “will not be able to continue to satisfy all of the government’s obligations… [in] early June, and potentially as early as June 1,” she wrote at the time.
In January of this year, the U.S. exceeded its $31.38 trillion expenditure cap, forcing Yellen to take “extraordinary measures” to cover the country’s expenses in the meantime.
Democrats have argued for a clear rise in the debt ceiling, while Republicans have attempted to link any increase with limitations on spending growth in order to manage the spiralling national debt.
Prior to this, the House approved a Republican plan to raise spending caps and extend the ceiling by one year. Joe Biden, the vice president, has threatened to veto the proposal if it comes to his desk.
Last week, Biden and Congressional leaders met to talk about the problem; however, McCarthy said that there was “no new movement” on the subject after the discussion.