Treasury Secretary Janet Yellen warned congressional leaders Wednesday that the U.S. is on track to default on the national debt in October if the White House and Congress are unable to raise the debt limit.
In a Wednesday letter, Yellen said that the Treasury Department would run out of cash and extraordinary measures to keep the federal government within its legal borrowing limit some time next month.
“Given this uncertainty, the Treasury Department is not able to provide a specific estimate of how long the extraordinary measures will last. However, based on our best and most recent information, the most likely outcome is that cash and extraordinary measures will be exhausted during the month of October,” Yellen wrote to Speaker Nancy Pelosi (Calif.), House Minority Leader Kevin McCarthy (R-Ca.), Senate Majority Leader Charles Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.)