Yellen sees “highly likely” that the US will default next week if debt ceiling is not raised

The secretary of the U.S. TreasuryJanet Yellen, considers that it is “highly likely“that the country will be unable to meet its payment obligations from the beginning of June if Congress does not act to raise or suspend the debt limit.

This is how it has warned in a letter sent to the Speaker of the House of Representatives, Kevin McCarthy.

In this regard, he recalls that previous stalemates in debt ceiling negotiations demonstrated that waiting until the last minute to suspend or raise the debt ceiling can cause serious harm to the business and household confidenceand increase short-term financing costs and negatively affect the rating from USA

“If Congress fails to raise the debt limit, it would cause severe hardship to families, would damage our global leadership and would call into question our ability to defend our national security interests,” he adds.