The US Treasury said Thursday that it began taking “extraordinary measures” to continue complying with its obligations related to the maturities of the country’s debt, upon reaching the authorized debt limit.
Those “extraordinary measures” can help reduce the amount of outstanding debt subject to the limit, currently set at $31.4 trillion, but the Treasury warned that these tools would only help for a limited time, probably no more than six months.
In a letter to House Republican Speaker Kevin McCarthy, Treasury Secretary Janet Yellen called on Congress to raise the debt ceiling.
“I respectfully urge Congress to act quickly to protect America’s full guarantee“, said.
Due to the debt limit, Treasury would not be able to fully invest a portion of the Civil Service Disability and Retirement Fund, with a “debt issuance suspension period” which will last until the beginning of June.
Treasury will also stop further investment of amounts credited to the Postal Service Retiree Health Benefit Fund, Yellen said.
The world’s largest economy could face serious disruption, with opposition Republicans threatening to reject an increase in the legal debt ceiling, which could push the United States into default.
Source: Gestion
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