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The US government could default on its obligations if Congress does not increase the country’s debt ceiling by June 5, US Treasury Secretary Janet Yellen says.
Yellen pushes back potential US default date to June 5
US Treasury Secretary Janet Yellen has extended the deadline for raising the federal debt limit, saying the government would default on its obligations if Congress does not increase the country’s debt ceiling by June 5.
Yellen had previously said a default could happen potentially as early as June 1.
The extension buys White House and congressional negotiators more time to strike a deal to raise the statutory $US31.4 trillion ($A48.1 trillion) ceiling on the country’s borrowing capacity.
In a letter to Congress, Yellen said her department will make more than $US130 billion of scheduled payments in the first two days in June, including to veterans and Social Security and Medicare recipients.
