June 1, 2023, marks the earliest date that Treasury Secretary Janet Yellen has projected the U.S. government would run out of cash and be unable to pay its debts. A default on the national debt would be unprecedented, and even getting close to the deadline without Congress having raised the debt ceiling could have consequences for markets.
As in years past when a deal was uncertain, Vanguard is taking steps to prepare operationally and from an investment management standpoint in the event a default can't be averted. We believe investors should maintain a long-term focus.