(Reuters) - U.S. Treasury Secretary Scott Bessent on Friday urged Congress to raise the federal government's debt limit by mid-July to avoid a default that would upend global markets.

Bessent told congressional leaders that there is a "reasonable probability" that the federal government would run short of cash to cover its obligations in August, when Congress is due to be out of town.

"Therefore I respectfully urge Congress to increase or suspend the debt limit by mid-July, before its scheduled break, to protect the full faith and credit of the United States," Bessent wrote in a letter.