Treasury Secretary Janet Yellon on Friday sent Congress a letter stating her agency thinks the federal government have some extra time to take “extraordinary measures” to avoid defaulting on its loans, sayin the deadline is closer to Jan. 14, than Jan. 2.
Last year, then-House Speaker Kevin McCarthy and President Joe Biden reached a deal, which was passed by Congress, that suspended the debt ceiling until next month. President-elect Donald Trump last week tried to get Congress to raise the debt ceiling again or even eliminate it before he’s sworn in next month, but 38 Republicans voted against a House spending bill that included raising the ceiling.
Yellen said the extended the deadline was mostly because of the timing of debt payments associated with a Medicare trust fund, which is projected to reduce the outstanding debt by about $54 billion.
“Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures,” Yellen wrote in the letter to congressional leadership. “I respectfully urge Congress to act to protect the full faith and credit of the United States.”
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, Politico reported. […]
— Read More: justthenews.com
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