Janet Yellen warned Congress that the US could default on its debt by June 1st if the nation’s borrowing authority is not raised.

• The Congressional Budget Office also reported that it saw a greater risk of the US running out of funds in early June due to less-than-expected tax receipts.

Even if Congress raises the debt limit before a default occurs, the uncertainty could raise borrowing costs and add other financial stress.

• The result leads to a weakened labor market and our standing on the world stage falling.
• Additionally, while Russia’s invasion of Ukraine remains a burden on U.S. economic growth, Treasury officials say the debate over the debt ceiling poses the greatest risk to the U.S. financial position.

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