Yellen says US could hit debt ceiling as soon as June 1

Treasury Secretary Janet Yellen notified Congress on Monday that the U.S. is projected to reach its debt limit as early as June 1, if the body does not raise or suspend the debt limit before then.

In a letter to House and Senate leaders, Yellen urged Congress “to protect the full faith and credit of the United States by acting as soon as possible” to address the $31.4 trillion limit on its legal borrowing authority.

“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” she said in the letter.

The Treasury said Monday it plans to increase its borrowing during the April to June quarter of this year, even as the federal government is close to breaching the debt limit.