Treasury Secretary Yellen: U.S. Could Run Out of Cash by June – What You Need to Know

Treasury Secretary Janet L. Yellen has issued a stark warning: it's now “highly likely” the U.S. Treasury will run out of sufficient cash in early June if Congress fails to act on the debt ceiling. This isn't just a possibility; Treasury Secretary Janet Yellen reiterated on Monday that the United States could run out of money to pay its bills by June 1 if Congress does not raise or suspend the debt limit.

June 1st Deadline Looms: Yellen's Urgent Plea to Congress

Adding a new level of urgency, Treasury Secretary Janet Yellen on Monday warned lawmakers that the U.S. could run out of cash in early June. She reinforced her warning to Congress that it has only a little time left to address the debt. Previously, the expectation was slightly later, but Treasury Secretary Janet Yellen told Congress Friday that the U.S. government is now expected to run out of cash to pay its current obligations by June 5.

The Potential Consequences: What Happens if the U.S. Runs Out of Money?

The question on everyone's mind is: What happens if the U.S. runs out of money? This unprecedented situation could have severe repercussions for the global economy. While the exact consequences are uncertain, potential impacts include:

• Delayed Social Security payments
• Disrupted Medicare and Medicaid funding
• Government shutdowns
• Increased borrowing costs
• A potential global recession

Yellen's Repeated Warnings: Congress Must Act Now

WASHINGTON – Treasury Secretary Janet Yellen said Monday that it is highly likely the U.S. will run out of money to pay its bills as early as June 1 if the debt ceiling isn't addressed. This isn't the first time Yellen has sounded the alarm. She has repeatedly stressed the urgency of the situation, emphasizing that a failure to raise or suspend the debt limit would have devastating consequences. The time for debate is over; Congress needs to act decisively to avoid a financial crisis.