Janet Yellen tells Congress US could hit debt limit in mid-January
Published On Dec 27, 2024, 5:23 PM
Treasury Secretary Janet Yellen has indicated that the U.S. could reach its statutory debt ceiling as early as mid-January 2025. In her communication to Congress, she mentioned that the Treasury would need to start implementing extraordinary measures to manage the national debt, which has accumulated to approximately $36 trillion. These measures are designed to avert a situation where the government defaults on its obligations. Yellen urged Congress to act promptly to maintain the credibility and financial stability of the U.S. government, especially after previous contentious negotiations over fiscal responsibility.
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The news about the impending debt ceiling and the likelihood of extraordinary measures may introduce volatility in the markets as investors react to the uncertainty surrounding U.S. fiscal policy. Historically, such news can lead to market apprehension, particularly in sectors sensitive to government spending and interest rates.