US government could run out of cash in early June, Yellen warns

The US government was likely to run out of cash to meet all of its obligations, possibly as soon as next month, unless Congress acted.

In a letter sent to Congress, the head of the country's Treasury, Janet Yellen, reportedly said that could "potentially be as soon as 1 June".

In January, Yellen had warned that the so-called 'X date' might arrive around 5 June.

Yellen, however, also said that tax revenues and spending were "inherently variable" so that "it is impossible to predict with certainty the exact date when Treasury will be unable to pay the government's bills."

According to some analysts, Washington might be able to forestall a government default until well into July, depending on just how developments played out.

President Joe Biden responded by calling a meeting with the Democratic and Republican heads of the US House of Representatives and Senate for 9 May.

Republicans in the House approved a bill during the week before that would raise the government's debt ceiling, but which included reductions in spending.

For his part, Biden was on record as saying that he would only negotiate once the ceiling had been raised.