U.S. begins ‘extraordinary’ steps to avoid debt ceiling

News January 19, 2023 News
U.S. begins ‘extraordinary’ steps to avoid debt ceiling

From The Washington Post by Jacob Bogage

The Biden administration began “extraordinary measures” Thursday to prevent the federal government from breaching its debt limit and hurtling toward default, a grim scenario with the potential to destabilize markets and devastate the economy.

Treasury Secretary Janet L. Yellen told lawmakers that officials will alter certain federal investments to preserve the nation’s credit until summer — largely through technical moves that will buy lawmakers time to pass legislation that raises or suspends the amount the government is allowed to borrow, currently capped at $31.4 trillion.

“I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,” Yellen wrote to House Speaker Kevin McCarthy (R-Calif.) on Thursday.

Photo by Michael Buholzer / EPA-EFE / Shutterstock

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