“Extraordinary measures” will be needed to keep the US from defaulting on its obligations if the nation’s debt ceiling isn’t raised or suspended by mid-January, Treasury Secretary Janet Yellen warned Congress Friday.
Yellen, in a letter to House and Senate leaders, noted that the nation’s debt ceiling — the total amount of money the federal government is authorized to borrow to pay for obligations such as Social Security and Medicare benefits — was suspended in June 2023 but will once again be in effect on Jan. 1.
The 78-year-old Treasury secretary notified congressional leaders that a projected $54 billion drop in the national debt on Jan. 2 will potentially give lawmakers a few extra weeks to pursue legislative action before the government can no longer pay its bills under the new debt limit.
“Treasury currently expects to reach the new limit between January 14 and January 23,…
