New Estimate Says US Could Face Debt Default by Early June

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New Estimate Says US Could Face Debt Default by Early June
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The U.S. could face an unprecedented default on its obligations as soon as early June if Congress does not act to lift the debt limit, a Washington think tank said Wednesday.

That inches up from the center's previous prediction in June 2022 that the “extraordinary measures” that U.S. Treasury uses to pay the government's bills would not be exhausted before the third quarter of 2023.

Akabas said the December 2022 big spending bill, an extended pause on student loan repayments and high interest rates resulting in higher costs to service U.S. debt have contributed to moving up the X-date. President Joe Biden and new Republican House speaker Kevin McCarthy met once earlier this month to talk about the debt limit, but expectations are low for quick progress as GOP lawmakers push for steep spending cuts in exchange for a debt ceiling deal.

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