US Treasury Secretary Janet Yellen has warned that failing to act on the debt ceiling could lead to a "constitutional crisis" and economic catastrophe. Yellen has urged

Congress to raise the debt ceiling without conditions, as negotiations have been overshadowed by political differences over sweeping spending cuts. President Biden has requested a debt ceiling increase without conditions, but Republicans have pushed for spending cuts over the next decade.

If Congress fails to raise the debt ceiling by early June, the US could run short of cash to pay its bills, and by July or August, the country may have to stop borrowing altogether. This could trigger financial market consequences, as investors question the value of US bonds. Photo by US Department of the Treasury, Wikimedia commons.