In her latest letter to top lawmakers, Yellen said the estimate takes into account new information in the weeks since her earlier notice to leaders warning the nation risks a federal default in early June.
While Yellen acknowledges in the letter that the actual so-called “X-date” could arrive “a number of days or weeks later” than the estimate, she added that the update is based on currently available data.
President Biden is expected to meet with Speaker Kevin McCarthy (R-Calif.) and other congressional leaders Tuesday shortly before he heads off to the Group of Seven summit.
The meeting will be pair’s second this month and comes amid a monthslong stalemate over how to address the debt limit.
In remarks to reporters on Monday, McCarthy said he thinks the leaders are still “far apart” in talks, despite ongoing staff discussions.
“It doesn’t seem to me yet they want a deal, it just seems like they want to look like they are in a meeting but they’re not taking anything serious,” McCarthy said of the White House and Democrats.
The speaker said he thinks both sides need to “have a deal done by this weekend to be able to have a timeline to be able to pass it.”
Pressure has been rising on Capitol Hill, as members on both sides voice concerns over the pace of progress in the bipartisan discussions.
Yellen warned against lawmakers “waiting until the last minute to suspend or increase the debt limit” in her letter on Monday.
She warned that the wrangling could “cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.”
“In fact, we have already seen Treasury’s borrowing costs increase substantially for securities maturing in early June,” she added.
The Hill’s Aris Folley has more here.
