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Yellen’s Team Rejects Debt Prioritization on Borrowing Limit

  • Government had contingency plan under Obama administration
  • Yellen sees U.S. debt-limit steps likely exhausted in October
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Yellen’s Team Rejects Prioritization on Approaching Debt Limit
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Treasury Secretary Janet Yellen’s team doesn’t see prioritizing payments to creditors as an option should the U.S. government exhaust its traditional measures to avoid a default induced by the debt limit, the department said Thursday.

The U.S. “pays all its bills on time,” said Treasury spokeswoman Lily Adams. “The only way for the government to address the debt ceiling is for Congress to raise or suspend the limit, just as they’ve done dozens of times before.”