11:58 - 8.05.2023

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May 8, Fineko/abc.az. U.S. Treasury Secretary Janet Yellen warned that the lack of measures on the debt ceiling could provoke a "constitutional crisis" with consequences for financial markets and interest rates. The government can pay bills without increasing the debt limit only until the beginning of June, Ms. Yellen recalled.

ABC.AZ reports that on May 1, the minister notified the Congress that the U.S. may default on its debt on June 1.

The head of the U.S. Treasury Department again urged lawmakers to "do their job" and raise the debt ceiling, noting that the administration will soon exhaust its resources to prevent default.

"We have been using emergency measures for several months now and our ability to do this is coming to an end. According to our forecasts, there may come a time in early June when we’ll not be able to pay the bills. We need to raise the debt ceiling to avoid an economic catastrophe," she said.

According to Yellen, the U.S. has "no good options" to resolve the current situation if the Congress does not agree to raise the debt ceiling.