Janet Yellen warned the stand-off over the debt ceiling has resulted in a jump in government borrowing costs, as the Treasury secretary doubled down on predictions the US risks running out of cash as early as June 1.
The Treasury’s borrowing costs have increased “substantially for securities maturing in early June”, Yellen noted in a letter sent to congressional leaders on Monday.
She also reiterated her estimate from earlier this month that the so-called X-date — when the government runs out of money and runs the risk of defaulting — could come in 17 days unless lawmakers lift the borrowing limit.
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