Yellen Faces U.S. Debt-Limit Dance, With Covid Complications
- Debt-limit suspension ends Aug. 1, unless Congress acts
- Markets risk disruption if lawmaker delay proves prolonged
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Treasury Secretary Janet Yellen faces the challenge of speeding a debt-ceiling increase through Congress without shaking investor confidence, a potentially difficult task even with Democrats controlling both chambers and the White House.
The current suspension of the U.S. borrowing limit expires on Aug. 1, and the Treasury Department on Wednesday cautioned that if Congress fails to act, the administration would have to shift federal funding to make good on debt payments. Officials are looking at scenarios where those accounting measures “could be exhausted much more quickly” than previously, the department said.