Treasury Secretary Janet Yellen has reiterated that June 1 is a "hard deadline" for the United States to raise the debt ceiling or face potential default on its financial

obligations. Yellen emphasized this during an interview on NBC's "Meet the Press," stating that the assessment remains unchanged since her last communication with Congress. The reaffirmation comes as President Joe Biden acknowledged the dwindling time to employ unilateral actions and warned of the political ramifications if congressional Republicans exploit a national default. Yellen emphasized that failure to raise the debt ceiling would result in tough choices and the possibility of some bills going unpaid.

Yellen dismissed the likelihood of tax receipts or spending extending the X-date beyond early June without congressional intervention. She cited the Republican party's insistence on removing revenue from the negotiation table as one of the sticking points in the ongoing discussions. Yellen expressed concern over the proposed elimination of funding for the Internal Revenue Service's efforts to combat tax fraud.

While acknowledging President Biden's mention of invoking the 14th Amendment, Yellen deemed it unsuitable for the current circumstances due to legal uncertainties and time constraints. Instead, she emphasized the need for Congress to raise the debt ceiling and cautioned that failure to do so would lead to undesirable outcomes regardless of subsequent decisions. Photo by Federalreserve, Wikimedia commons.