Treasury Secretary Janet Yellen has warned the Speaker of the House Kevin McCarthy that the US could default on its debts as early as June 1 if Congress fails to raise the debt ceiling. While McCarthy's Republican Party wants wide-ranging spending cuts - a decades-old priority - to accompany the raise, Democrats believe a "clean raise," with no addendums or cuts, is needed as precedent shows. The consequences of a default include monthly mortgage payments and private student loan payments surging and Americans losing $20,000 in retirement savings. A short default could lead to 2.6 million job losses, according to Moody's Analytics. Republicans recently passed through a package for a short-term raise with cuts but Democrats have rejected it. Whether or not Congress will avoid economic catastrophe remains to be seen.