Politico and The Washington Post report that Treasury Secretary Janet Yellen warned today that the U.S. could default as early as June 1 if Congress doesn’t raise the debt limit….

Politico writes that "The latest guidance increases pressure on congressional leaders and the White House to strike an elusive deal to raise the debt ceiling. The Washington Post notes that "the new estimate followed less than a week after House Republicans delivered on their pledge to try to leverage the looming deadline to secure spending cuts, defying President Biden and officially touching off a political stalemate that could tip the fragile economy into another recession.

Meanwhile, Majority Leader Chuck Schumer announced the Senate would hold a hearing this week on the Republican debt ceiling bill. The bill passed the House last week and is tied to deep cuts in government spending. And President Biden said taxpayers are not bailing out a third regional bank that failed over the weekend. He also repeated his calls for Congress to pass legislation to increase penalties on bank executives for bank failures caused by mismanagement and again for regulators to take additional steps on supervision and liquidity requirements.

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