Treasury chief Janet Yellen says the wall of debt could be reached "as early as June 1" A default "would cause an economic and financial catastrophe," warned Yellen on April 25. The US Congress must regularly vote to raise the federal government's debt ceiling.
But this year, Republicans refuse to give what they consider to be a blank check in favor of the Biden administration and instead want an increase in this ceiling to be coupled with a drastic cut in federal spending. The two parties, however, must reach an agreement quickly.