WASHINGTON—The United States could come up against its debt ceiling as soon as in mid-January, Treasury Secretary Janet Yellen said Friday, urging Congress to “act to protect the full faith and credit” of the country.
Lawmakers have suspended the debt ceiling—a limit on government borrowing to pay for bills already incurred—until Jan. 1 next year.
This means that on Jan. 2, a new limit will be set matching the amount of debt issued by the Treasury Department.
But the path forward could prove to be contentious if the United States hits this new limit, given that the lifting of the ceiling has been a thorny partisan issue in recent years. AFP
“Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures,” said Yellen in a letter addressed to Republican House Speaker Mike Johnson and other lawmakers. AFP
