Yellen: the US Treasury Department will start taking measures to avoid default from 21 January
The US Treasury Department will start taking emergency measures from 21 January to avoid default due to reaching the national debt ceiling, Treasury Secretary Janet Yellen said.
‘This letter is to notify you … of the extraordinary measures that the Treasury Department will begin to implement as of 21 January,’ Yellen said in a letter to the US congressional leadership in connection with reaching the national debt ceiling and the threat of default.
Yellen added that the emergency measures will last until 14 March. She warned that the emergency measures period would be accompanied by ‘significant uncertainty, ’ including the challenges of forecasting U.S. government payments and receipts for months ahead…’
‘I respectfully urge Congress to act swiftly,’ the finance minister said.
On the twenty-first of December, US President Joe Biden signed a temporary budget bill that averted a shutdown. By the end of the deadline for funding federal agencies under the new law (14 March), a new US administration led by Donald Trump will already be in power.