The United States Congressional Budget Office (CBO) warned on Wednesday that the government could default on its debt as early as July in case legislators fail to reach an agreement on the debt ceiling impasse.
"The extraordinary measures could be exhausted sooner, and the Treasury could run out of funds before July," the federal agency underlined, cautioning that such a scenario would prevent the government from entirely covering its bills.
"The Treasury has already reached the current debt limit of $31.4 trillion, so it has no room to borrow under its standard operating procedures, other than to replace maturing debt," the CBO stressed, forecasting that the federal budget deficit could hit $1.4 trillion in 2023.
