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US Treasury to launch measures Tuesday to avoid debt limit breach
World News
18-01-2025 | 01:31
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US Treasury to launch measures Tuesday to avoid debt limit breach
U.S. Treasury Secretary Janet Yellen said that the government would reach its statutory borrowing limit on Tuesday and begin employing "extraordinary measures" to keep from breaching the cap and risking a potentially catastrophic default.
In a letter on Friday to congressional leaders just three days before the Biden administration turns over U.S. government control to President-elect Donald Trump and his team, Yellen said the Treasury would begin using extraordinary measures on January 21nuary.
"The period that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. government months into the future," Yellen said in the letter.
Yellen said the Treasury would suspend investments in two government employee benefit funds through March 14 to claw back borrowing capacity under the $36.1 trillion debt ceiling. As of Thursday, the Treasury reported borrowings of $36.08 trillion.
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