Treasury Secretary Janet Yellen on Friday told Congress that she expects the department will now need to take “extraordinary measures” next week to avoid hitting the debt ceiling.
Yellen told Congress in December that she believed actions would need to be taken between January 14 and January 23 in order to help prevent the U.S. from defaulting on its loans.
The secretary said the Treasury Department will stop paying certain accounts beginning Tuesday, including the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund, to make up for budget shortfalls, and urged Congress to either raise or suspend the debt ceiling as quickly as possible, according to the Associated Press.
It is not clear how long Congress will have to secure a deal on funding or raising the debt ceiling again once the measures are taken, but in the past it has helped stall the default for several months
“The period of time 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 wrote in the letter. “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.” […]
— Read More: justthenews.com
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