Yellen warns Congress of nearing US default

US could default in October

clock • 1 min read

US Treasury secretary Janet Yellen has urged Congress to raise the debt ceiling to avoid US default, warning the Treasury could run out of cash as early as October.

In a letter to the House, Yellen said that while it was difficult to give a specific estimate, the Treasury's cash supplies would "most likely" be exhausted at some point in October. This would result in a US default.  "A delay that calls into question the federal government's ability to meet all its obligations would likely cause irreparable damage to the US economy and global financial markets," Yellen said in the letter. "We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and c...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FIF25: House of Lords member calls for stronger international economic cooperation

FIF25: House of Lords member calls for stronger international economic cooperation

Economics often a driver of geopolitical instability

Sorin Dojan
clock 04 June 2025 • 2 min read
Woodford sets date for portfolio platform launch

Woodford sets date for portfolio platform launch

W4.0 will launch on Friday 6 June

Cristian Angeloni
clock 03 June 2025 • 1 min read
FCA seeks feedback on stablecoin and crypto policy proposals

FCA seeks feedback on stablecoin and crypto policy proposals

Feedback deadline set at 31 July

Patrick Brusnahan
clock 29 May 2025 • 1 min read