And he assured that “although the Treasury is not currently in a position to provide an estimate of how long the extraordinary measures will allow us to continue paying government obligations, cash and extraordinary measures are unlikely to run out before early June“.
As of Wednesday, Treasury data showed that US federal debt was $78 billion below the limit, with a Treasury operating cash balance of US$346.4 billion. The Department reported Thursday a deficit of US$85,000 million in Decemberdue to the fact that income decreased and expenses increased, particularly due to the interest costs of the debt.
Yellen said in her letter to the new Republican Speaker of the House, Kevin McCarthy, that Treasury plans to suspend new investments this month in two government retirement funds for pensions and health careas well as reinvestments in the Government Securities Investment Fund, or Fund G, part of a savings plan for public employees.
“The use of extraordinary measures allows the Government to meet its obligations only for a limited time”Yellen wrote to McCarthy and other congressional leaders, saying “therefore, it is critical that Congress act in a timely manner to raise or suspend the debt limit. Failure to meet government obligations would cause irreparable damage to the economy.” America, the livelihoods of all Americans, and global financial stability.
Republicans, who now have a slim new majority in the House of Representatives, are poised to demand spending cuts from President Joe Biden’s government, raising fears of a bitter fight over the debt ceiling, which Republicans have threatened to use as leverage.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
