- January 14, 2023
- Posted by: Stratford Team
- Category: Economy
WASHINGTON — Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit Thursday and will then begin employing “extraordinary measures” to continue paying the nation’s bills if lawmakers did not act to raise the statutory debt limit.
In a letter to House and Senate leaders, Yellen said her actions will buy time until Congress can pass legislation that will either raise the nation’s $31.4 trillion borrowing authority or suspend it again for a period of time. But she said it’s “critical that Congress act in a timely manner.”
“Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans and global financial stability,” Yellen wrote.
“In the past, even threats that the U.S. government might fail to meet its obligations have caused real harms, including the only credit rating downgrade in the history of our nation in 2011,” she said,…