Yellen Warns US Paying Price as Negotiators Battle on Debt Limit

  • Yellen issues fresh letter to lawmakers on debt-limit timeline
  • Biden announces fresh meeting with Congress leaders Tuesday
Yellen Says US Could Run Out of Cash by June 1
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Treasury Secretary Janet Yellen warned that the US is already paying a price for its failure to raise the federal debt limit, as talks between the White House and lawmakers from both parties continued into a second week.

“We have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June,” Yellen said in a letter to congressional leaders Monday. That’s the time period by when the Treasury risks running out of sufficient cash for all federal obligations.