JANUARY 19, 2023, UPDATE:
WASHINGTON (AP) — The Treasury Department says it has started taking “extraordinary measures” as the government has brushed up against its legal borrowing capacity of $38.381 trillion. The Department sent a letter to congressional leaders Thursday (Jan. 19, 2023) to that effect. Frictions between President Joe Biden and House Republicans are raising alarms about whether the U.S. can sidestep a potential economic crisis. Markets so far remain calm, as the government can temporarily rely on accounting tweaks to stay open. That means any threats to the economy are several months away. But this particular moment seems more fraught than past brushes with the debt limit.
JANUARY 19, 2023:
WASHINGTON (AP) — The countdown toward a possible U.S. government default is in the offing. And frictions between President Joe Biden and House Republicans are raising alarms about whether the U.S. can sidestep a potential economic crisis. The Treasury Department projects that the federal government on Thursday (Jan. 19, 2023_ will reach its legal borrowing capacity. It’s an artificially imposed cap that lawmakers have increased roughly 80 times since the 1960s. Markets so far remain calm, as the government can temporarily rely on accounting tweaks to stay open. That means any threats to the economy are several months away. But this particular moment seems more fraught than past brushes with the debt limit.
JANUARY 13, 2023:
WASHINGTON (AP) — Treasury Secretary Janet Yellen has notified Congress that the U.S. is projected to reach its debt limit on Thursday (Jan. 19, 2023) and will then resort to “extraordinary measures” to avoid default. Those measures include delaying some payments in order to provide some headroom to make other payments that are deemed essential, like those for Social Security and debt instruments. Yellen said Friday (Jan. 13, 2023) that while her department can’t estimate how long extraordinary measures will allow the U.S. to continue to pay the government’s obligations, “it is unlikely that cash and extraordinary measures will be exhausted before early June.”
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