Treasury secretary Janet Yellen says that 'failure to meet the government's obligations would cause irreparable harm to the U.S. economy.' Economics
, Yellen warns of an approaching debt limit and urges Congress to act swiftly before the nation’s massive borrowing authority of $31.4 trillion is depleted, to avoid defaulting on the country’s obligations. Although, a temporary solution could be utilized to prevent default on U.S. obligations.
Janet Yellen, secretary of the U.S. Treasury , sent identical letters to House Democratic leader Hakeem Jeffries, Senate majority leader Charles Schumer, Senate Republican leader Mitch McConnell, chairman of the House Committee on Ways and Means Jason Smith, ranking member of the House Committee on Ways and Means Richard E. Neal, chairman of the Senate Committee on Finance Ron Wyden, and ranking member of the Senate Committee on Finance Mike Crapo.
The Treasury secretary insists that leveraging a process known as “extraordinary measures” could buy Congress more time to increase the U.S. borrowing authority. The process, which is like moving money from one account to another to make sure bills are paid on time, allows the Treasury Department to shuffle money around to prevent the U.S. from defaulting on its obligations. However, Yellen notes that this can only be done for a limited time.
“The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors,” Yellen wrote. She added, “It is unlikely that cash and extraordinary measures will be exhausted before early June.” The secretary of the Treasury continued: I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.
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Treasury Secretary Janet Yellen tells Congress that US is projected to reach debt limit next weekThe U.S. is projected to reach its debt limit on Thursday and will then resort to 'extraordinary measures' to avoid default, Treasury Secretary Janet Yellen told Congress.
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Treasury Secretary Janet Yellen tells Congress that US is projected to reach debt limit next weekThe U.S. is projected to reach its debt limit on Thursday and will then resort to 'extraordinary measures' to avoid default, Treasury Secretary Janet Yellen told Congress.
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Treasury Secretary Janet Yellen tells Congress that US is projected to reach debt limit next weekThe U.S. is projected to reach its debt limit on Thursday and will then resort to 'extraordinary measures' to avoid default, Treasury Secretary Janet Yellen told Congress.
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Treasury Secretary Janet Yellen tells Congress that US is projected to reach debt limit next weekThe U.S. is projected to reach its debt limit on Thursday and will then resort to 'extraordinary measures' to avoid default, Treasury Secretary Janet Yellen told Congress.
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Treasury Secretary Janet Yellen tells Congress that US is projected to reach debt limit next weekThe U.S. is projected to reach its debt limit on Thursday and will then resort to 'extraordinary measures' to avoid default, Treasury Secretary Janet Yellen told Congress.
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Treasury Secretary Janet Yellen tells Congress that US is projected to reach debt limit next weekThe U.S. is projected to reach its debt limit on Thursday and will then resort to 'extraordinary measures' to avoid default, Treasury Secretary Janet Yellen told Congress.
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