January 1, Yellen: US government will run out of money in less than three weeks

Treasury Secretary Janet Yellen warned bipartisan members of Congress that the federal government will likely run out of money by October 18 unless lawmakers raise or suspend the debt ceiling.

If the US were to default on the national debt, it would lead to potentially catastrophic economic consequences.

“It is uncertain whether we could continue to meet all the nation’s commitments after that date,” Yellen wrote.

Yellen’s warning comes hours after Senate Republicans blocked a bill that would have suspended the debt ceiling.

“We know from previous debt limit impasses that waiting until the last minute can cause serious harm to business and consumer confidence, raise borrowing costs for taxpayers, and negatively impact the credit rating of the United States for years to come,” the Treasury Secretary wrote.

“Failure to act promptly could also result in substantial disruptions to financial markets, as heightened uncertainty can exacerbate volatility and erode investor confidence,” Yellen added.

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Yellen warns Congress has just three weeks before US expected to default