Treasury confirms U.S. default as early as June 1 without debt ceiling hike

The U.S. Treasury Department has confirmed that the country could default as early as June 1 if Congress does not raise the debt ceiling, leaving just 10 days for negotiations between the White House and congressional Republicans.

In a letter to Congress, Treasury Secretary Janet Yellen noted that the agency may not be able to meet all U.S. government payment obligations without an increase in the $31.4 trillion debt limit, which could trigger the first-ever U.S. default.

President Joe Biden is meeting with Republican speaker of the House Kevin McCarthy to negotiate a debt ceiling deal, with talks described as "on the right path." Yellen has warned of the negative consequences of a default, including higher borrowing costs for taxpayers and a negative impact on the credit rating of the United States.