The U.S. Treasury Department will take measures in mid-January to prevent the U.S. from defaulting on its obligations, Secretary Janet Yellen.
“As a result, the debt is currently projected to temporarily decrease, and accordingly, Treasury does not expect that it will be necessary to start taking extraordinary measures on January 2 to prevent the United States from defaulting on its obligations,” Yellen said in a letter to lawmakers on Friday.
“Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures,” Yellen added.
Yellen said the country’s debt is expected to decrease by about $54 billion on January 2 “mostly due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments.”
She also urged Congress to act to protect the full faith and credit of the U.S. (Anadolu)