Yellen’s June 1 Debt Limit Deadline May Be ‘Weeks Later,’ Fed Minutes Show

Traders work on the floor at the New York Stock Exchange as Federal Reserve Chairman Jerome Powell speaks after announcing a rate increase in New York on Nov. 2, 2022. Seth Wenig/AP Photo

Not raising the nation’s debt limit in a “timely manner” could pose a substantial risk to the financial system and the broader U.S. economy, according to minutes from the May Federal Open Market Committee (FOMC) policy meeting.

FOMC participants assessed the Treasury Department’s forecast that the federal government would be unable to fully satisfy its obligations as early as June 1 without a debt limit increase or suspension.