What happens if US fails to lift debt limit by June 5?

TREASURY Secretary Janet Yellen yesterday updated the date for a possible US debt default to June 5 if Congress fails to raise the ceiling on borrowing, pushing back a previous estimate of June 1.

This gives negotiators for President Biden and House Republican Speaker Kevin McCarthy a little breathing room as they work to find a bipartisan solution to lift the current spending cap, known as the debt ceiling.