Yellen says Treasury is taking extraordinary measures to avoid default as U.S. hits debt limit

The Treasury Department started taking alleged bonzer measures to support paying the national government's bills arsenic the U.S. deed its indebtedness bounds Thursday, Treasury Secretary Janet Yellen said.

In a letter addressed to House Speaker Kevin McCarthy, R-Calif., Yellen said the Treasury volition suspend caller investments successful the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund from Thursday until June 5, 2023. But she warned some moves are taxable to "considerable uncertainty" if Congress does not walk a measure to summation the $31.4 trillion indebtedness ceiling.

The funds volition beryllium replenished erstwhile the indebtedness ceiling is accrued oregon suspended, and the actions volition not impact national retirees and employees, Yellen said.

The Treasury caput warned past week that the U.S. authorities would deed the statutory indebtedness ceiling connected Thursday, aft which bonzer measures would beryllium taken to support the authorities from defaulting connected its indebtedness obligations.

The department's authorization mightiness prolong authorities operations until June, Yellen said Friday erstwhile she warned McCarthy that lawmakers should "act successful a timely mode to summation oregon suspend the indebtedness limit," successful portion to replenish wealth mislaid from the status and disabilities savings funds.

The White House besides urged Congress connected Friday to rise the indebtedness ceiling "without condition."

The U.S. authorities has not defaulted connected its debt, but the indebtedness ceiling has been raised 22 times from 1997 to 2022, according to the Government Accountability Office. The Biden medication volition prioritize negotiations for a caller measure to summation the indebtedness bounds aft the mid-April taxation deadline, according to a elder White House official.

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