US will default on national debt by October, warns Treasury secretary | WHAT REALLY HAPPENED

US will default on national debt by October, warns Treasury secretary

Secretary of the Treasury Janet Yellen has warned that the United States is on track to default on the national debt by October if the government does not do anything to raise the debt limit.

On Wednesday, Sept. 8, Yellen sent a letter addressed to House Speaker Nancy Pelosi, House Minority Leader Kevin McCarthy, Senate Majority Leader Charles Schumer and Senate Minority Leader Mitch McConnell.

In the letter, Yellen warned that the Department of the Treasury is running out of money. She added that the department was also running out of “extraordinary” measures it can use to keep the federal government within its legal borrowing limit. Without any action from Congress or the White House, the country will reach this limit by next month.

The so-called extraordinary measures Yellen is using have been in place since the federal debt limit was reimposed on Aug. 1 after being suspended for two years in July 2019.

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