Yellen delays US default prediction.

Yellen delays US default prediction.

Friday, U.S. Treasury Secretary Janet Yellen extended the deadline for raising the federal debt limit. 

She said that if Congress doesn't raise the country's $31.4 trillion debt cap by June 5, the government will stop paying its bills.

Yellen had said before that a failure could happen as soon as June.

The extension gives the White House and Congress more time to work out a deal to raise the legal limit on how much the country can borrow.

In a letter to Congress, Yellen said that her department will pay out more than $130 billion in planned payments in the first two days of June. 

Some of these payments will be made to soldiers and people who get Social Security and Medicare.

"During the week of June 5, the Treasury plans to make about $92 billion in payments and transfers," Yellen wrote. 

This includes a quarterly change of about $36 billion to the Social Security and Medicare trust funds.

So, she said, "our planned resources wouldn't be enough to meet all of these obligations."

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