Treasury Secretary Janet Yellen warns Congress it needs to raise or suspend the debt ceiling as U.S. government is poised to run out of cash

As the U.S. government gets closer to being unable to pay its bills, Treasury Secretary Janet Yellen on Wednesday urged Congress to act quickly to raise or suspend the debt limit. The divided Congress faces a growing list of urgent matters when it returns from recess later this month, but Democratic leaders said they must address the debt limit.

In a letter to Congressional leaders, Yellen wrote that based on the administration's best information, cash and extraordinary measures would be exhausted in October.  "A delay that calls into question the federal government's ability to meet all its obligations would likely cause irreparable damage to the U.S. economy and global financial markets," Yellen wrote. "At a time when American families, communities, and businesses are still suffering from the effects of the ongoing global pandemic, it would be particularly irresponsible to put the full faith and credit of the United States at risk."