US Treasury to launch measures to avoid debt limit breach on Tuesday
WASHINGTON - US Treasury Secretary Janet Yellen said that the government will reach its statutory borrowing limit on Tuesday and begin employing "extraordinary measures" to keep from breaching the cap and risking a potential catastrophic default.
Yellen said the Treasury would suspend investments in two government employee benefit funds through March 14, to claw back borrowing capacity under the $36.1 trillion debt ceiling. As of Thursday, the Treasury reported borrowings of $36.08 trillion. Trump himself had urged lawmakers to extend or repeal the debt ceiling and later blasted an earlier failure to do so in 2023 as "one of the dumbest political decisions made in years."The debt ceiling issue presents an early challenge to Yellen's expected successor, Trump Treasury pick Scott Bessent. The hedge fund manager told a U.S.