Debt ceiling controversy, US Treasury secretary insists on a deadline

If the debt ceiling is not raised, the US risks bankruptcy as early as June. U.S. Treasury Secretary Yellen is now pushing for a quick deal with Republicans — and sticking to the June 1 deadline.

US Treasury Secretary Janet Yellen is stepping up pressure on Republicans as negotiations over raising the debt ceiling stall. The deadline for a solution to prevent the US from defaulting on payments cannot be extended, Yellen told the NBC broadcaster.

June 1 is a “hard deadline”. The government is unlikely to stick to the June 15 deadline due to current tax revenue.

Soon to be over $31.4 trillion in debt?

In Washington, there is controversy over whether to raise the federal debt ceiling from the current $31.4 trillion. According to the Treasury Department, the US risks bankruptcy as early as June without a deal.

In the United States, disputes over the debt ceiling are frequent, and agreements are often reached only at the last minute. But this time, tighter lines between Democrats and Republicans and a lack of time for compromise are making stock markets jittery.