U.S. Treasury Secretary: Hope to Find Solution to "Most Difficult" Debt Ceiling Crisis

U.S. Treasury Secretary Janet Yellen described the crisis related to raising the U.S. debt ceiling as "more difficult" than before, but she still hopes to reach a solution to prevent the first default on debt in U.S. history. In an interview with Reuters, Yellen expressed her hope to inform Congress within the next two weeks about the timeline for the Treasury's funds running out to pay government bills. She noted that her assessment last week, that the Treasury may not meet its payment obligations by June 1, aligns with a report issued Friday by the Congressional Budget Office warning of "serious risks" of default in the first two weeks of June. Yellen added that the Biden administration and congressional Republicans are making progress in their negotiations over federal spending and raising the debt limit. She further remarked, "This is certainly not positive for relationships and standing globally and credibility. It may be more difficult this time, but I hope... we find a solution." Yellen indicated that President Biden, who is expected to meet again with congressional leaders this week, still considers attending the G7 summit, which starts next Friday in Hiroshima, a priority, but mentioned that he might cancel the trip unless sufficient progress is made to resolve the impasse. British Finance Minister Jeremy Hunt stated that the confrontation between Yellen and Congress poses a "very serious" threat to the global economy, adding, "It would certainly be devastating if America's GDP... goes off track due to failure to reach an agreement."