Key takeaways:
- Treasury Secretary Janet Yellen announced that the U.S. is projected to reach its borrowing limit of $31.4 trillion on January 19th.
- The Treasury Department will begin taking “extraordinary measures” next week to prevent the U.S. government from defaulting on its obligations.
- Yellen’s announcement is part of the HuffPost’s biweekly politics newsletter and is shaping up to be the biggest economic policy fight of the coming year.
Treasury Secretary Janet Yellen announced on Friday that the U.S. is projected to reach its borrowing limit of $31.4 trillion on January 19th. In response, Yellen said the Treasury Department will begin taking “extraordinary measures” next week to prevent the U.S. government from defaulting on its obligations. These measures are expected to continue until early June.
Yellen’s announcement came in response to a question from Speaker Kevin McCarthy (R-CA) on Sean Hannity’s nightly Fox News broadcast. McCarthy asked about the debt ceiling, which is the statutory limit on how much money the federal government can borrow. Yellen’s response gives House Democrats and Republicans some time to find a bipartisan way to raise or suspend the debt ceiling.
The Treasury Department’s “extraordinary measures” will allow the government to keep paying bills while Congress works to find a solution. Yellen’s announcement is part of the HuffPost’s biweekly politics newsletter and is shaping up to be the biggest economic policy fight of the coming year.
The Treasury Department’s “extraordinary measures” will help the government avoid defaulting on its obligations, but Congress must still find a bipartisan way to raise or suspend the debt ceiling. Yellen’s announcement is part of the HuffPost’s biweekly politics newsletter and is shaping up to be the biggest economic policy fight of the coming year. It remains to be seen how Congress will respond to Yellen’s announcement and what the outcome of the debt ceiling debate will be.
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