Yellen says U.S. could hit debt limit on Dec. 15, giving Congress more time to strike deal

Janet Yellen, U.S. Treasury secretary, speaks during an interview at the National Association of Business Economics (NABE) annual meeting in Arlington, Virginia, U.S., on Tuesday, Sept. 28, 2021.

Amanda Andrade-Rhoades | Bloomberg | Getty Images

Treasury Secretary Janet Yellen on Tuesday told lawmakers that she now estimates that the U.S. will reach its debt limit on Dec. 15, almost two weeks later than her initial forecast.

Those additional 12 days would offer Congress more time to strike a deal on how to lift or suspend the debt ceiling. If lawmakers fail to do so before the so-called drop-dead date, the U.S. government would default for the first time ever.

Yellen has said she expects a default would lead to a recession and jeopardize the U.S. dollar’s role as the globe’s reserve currency.

This is breaking news. Check back for updates.

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