Yellen warns Congress of nearing US default

US could default in October

clock • 1 min read

US Treasury secretary Janet Yellen has urged Congress to raise the debt ceiling to avoid US default, warning the Treasury could run out of cash as early as October.

In a letter to the House, Yellen said that while it was difficult to give a specific estimate, the Treasury's cash supplies would "most likely" be exhausted at some point in October. This would result in a US default.  "A delay that calls into question the federal government's ability to meet all its obligations would likely cause irreparable damage to the US economy and global financial markets," Yellen said in the letter. "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 c...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Is income under pressure?

Darius McDermott: Is income under pressure?

‘The period of abundant income is ebbing'

Darius McDermott
clock 04 March 2026 • 5 min read
Investors told 'hold your nerve' as Iran strikes drive volatility

Investors told 'hold your nerve' as Iran strikes drive volatility

Ongoing conflict impact

Linus Uhlig
clock 02 March 2026 • 3 min read
Smoothed funds are back - but advisers need to look beneath the surface

Smoothed funds are back - but advisers need to look beneath the surface

Defaqto’s Mike Turner examines the smoothed funds backdrop, differences in propositions and what it means for adviser due diligence…

Mike Turner
clock 02 March 2026 • 4 min read