U.S. reaches debt limit, setting 'early June' Congress deadline
The U.S. government is hitting its statutory debt limit on Thursday, requiring the Treasury Department to start using "extraordinary measures" to pay the bills.
WASHINGTON — The U.S. government hit its statutory debt limit on Thursday and the Treasury Department said it has begun resorting to "extraordinary measures" to pay the bills.
In a letter to congressional leaders Thursday, Treasury Secretary Janet Yellen said those special financial tools to meet the country's obligations can continue until at least Monday, June 5. After they expire, Congress will need to act to prevent default.
Yellen said in the letter that "the period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenge of forecasting the payments and receipts of the U.S. Government months into the future. I respectfully urge Congress to act promptly to protect the full faith and credit of the United States."
As U.S. hits debt limit, Treasury resorts to 'extraordinary measures' to pay billsJan. 19, 202303:40Yellen's warning comes as the new Republican House majority, led by Speaker Kevin McCarthy of California, demands conservative policy concessions in the form of spending cuts to lift the debt ceiling.
"Let’s change our behavior now. Let’s sit down. He’s the president. We’re the majority in the House. The Democrats are the majority in the Senate. And that’s exactly the way the founders designed Congress to work, find the compromise and find the commonsense compromise that puts us back onto a balanced budget," McCarthy told reporters Tuesday on Capitol Hill.
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