U.S. to Deploy ‘Extraordinary Measures’ to Avoid Default on Jan. 21
Published On Jan 17, 2025, 4:55 PM
Janet L. Yellen, the outgoing Treasury secretary, has warned Congress that unless the debt limit is raised, the Treasury will need to resort to 'extraordinary measures' starting January 21 to prevent a default. This message highlights the urgent need for lawmakers to act to protect the U.S. government's ability to meet its financial obligations, as the impending debt limit issue will be inherited by the incoming administration under President-elect Donald J. Trump.
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The situation surrounding the U.S. debt limit presents concerns regarding fiscal stability and governance. If Congress fails to raise the debt ceiling, it could lead to a potential default, negatively impacting investor confidence, bonds, and market stability. Investors might consider defensive positions or assets in sectors that tend to perform well during uncertainties.
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