Yellen Says US to Take Extraordinary Steps to Avert a Default

US Treasury seen running out of borrowing authority early June
Intense political fight seen in Congress to lift debt limit

White House National Economic Director Brian Deese says Congress will have to deal with the US debt ceiling without conditions during an interview with David Westin on “Balance of Power.”Source: Bloomberg

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By Christopher Condon

January 13, 2023 at 5:11 PM UTC

Updated on

January 13, 2023 at 5:44 PM UTC

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Treasury Secretary Janet Yellen said the department will begin taking special accounting maneuvers on Jan. 19 to avoid breaching the US debt limit, urging lawmakers to boost the ceiling to avert a devastating payments default.

“The period of time that extraordinary measures may last is subject to considerable uncertainty,” Yellen wrote in a letter to bipartisan congressional leaders Friday. Still, “it is unlikely that cash and extraordinary measures will be exhausted before early June,” she said.