The clock is ticking down towards the first debt default in American history, which could occur as soon as June 1 if Congress and President Joe Biden fail to reach an agreement to raise or suspend the debt limit.
Treasury Secretary Janet Yellen wrote Monday in a letter to congressional leaders that her department "will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1." It is impossible to know exactly when the Treasury will run out of authorized borrowing necessary to pay the federal government's bills, Yellen wrote, but that horizon is becoming more obvious as the days tick past. The Treasury has been operating under so-called "extraordinary measures"—effectively rooting around in the government's metaphorical couch cushions to turn up extra cash and borrowing authority in order to keep paying the bills—since January when it bumped up against a preliminary debt limit.
