U.S. Debt Default will Cause ‘Economic Disaster’, Treasury Secretary Warns

United States Treasury has warned that the U.S. government will be unlikely to meet payment obligations by early June if the debt ceiling is not raised. The date is earlier than the Treasury estimated in January, indicating that the United States financial situation is more precarious than previously thought. In a letter to Speaker of the House Kevin McCarthy, published on Monday, U.S. Treasury Secretary Janet Yellen asked Congress to increase the government’s debt ceiling before this date or to suspend its implementation in order to prevent economic turmoil. After reaching the borrowing cap of $31.4 trillion on January 19,…