US could default on its national debt as early as August — Congressional Budget Office

The US risks defaulting on its debt in August or even earlier — by the end of May. This will happen if US lawmakers do not adopt measures to raise the nation's debt ceiling, according to the Congressional Budget Office.

The federal agency's forecast followed an estimate by the Bipartisan Policy Center. According to it, the US could run short of cash to pay its bills sometime between mid-July and early October. However, it is rather difficult to predict the exact date of default on the US national debt due to the erratic nature of revenue collections and outlays, the Congressional Budget Office notes.

Republicans, controlling the US House of Representatives and Senate, have not yet announced plans to raise the borrowing limit. Previous delays in negotiations on this issue have already rattled financial markets, Reuters reports.