Treasury Secretary Yellen Urges Swift Action to Increase Spending Limit, Avert Default on US Obligations

Janet Yellen, the U.S. caput of the Treasury, sent a missive to Congress connected Friday urging lawmakers to summation the spending limit. Yellen stressed that the state would scope its statutory indebtedness bounds connected Jan. 19, 2023. She warned that “failure to conscionable the government’s obligations would origin irreparable harm to the U.S. economy, the livelihoods of each Americans, and planetary fiscal stability.”

Yellen Warns of Approaching Debt Limit, Urges Congress to Act Swiftly

On Friday, Jan. 13, 2023, the United States Treasury published a press release featuring a missive written by Janet Yellen, the 78th U.S. caput of the Treasury. The missive is addressed to the House of Representatives and the recently appointed 55th speaker, Kevin McCarthy (R-CA).

In the letter, Yellen warns of an approaching indebtedness bounds and urges Congress to enactment swiftly earlier the nation’s monolithic borrowing authorization of $31.4 trillion is depleted, to debar defaulting connected the country’s obligations. Although, a impermanent solution could beryllium utilized to forestall default connected U.S. obligations.

Janet Yellen, caput of the U.S. Treasury (pictured above), sent identical letters to House Democratic person Hakeem Jeffries, Senate bulk person Charles Schumer, Senate Republican person Mitch McConnell, president of the House Committee connected Ways and Means Jason Smith, ranking subordinate of the House Committee connected Ways and Means Richard E. Neal, president of the Senate Committee connected Finance Ron Wyden, and ranking subordinate of the Senate Committee connected Finance Mike Crapo.

The Treasury caput insists that leveraging a process known arsenic “extraordinary measures” could bargain Congress much clip to summation the U.S. borrowing authority. The process, which is similar moving wealth from 1 relationship to different to marque definite bills are paid connected time, allows the Treasury Department to shuffle wealth astir to forestall the U.S. from defaulting connected its obligations. However, Yellen notes that this tin lone beryllium done for a constricted time.

“The play of clip that bonzer measures whitethorn past is taxable to sizeable uncertainty owed to a assortment of factors,” Yellen wrote. She added, “It is improbable that currency and bonzer measures volition beryllium exhausted earlier aboriginal June.” The caput of the Treasury continued:

I respectfully impulse Congress to enactment promptly to support the afloat religion and recognition of the United States.

During a press briefing connected Friday, White House property caput Karine Jean-Pierre was questioned astir the approaching indebtedness limit, and she stated: “We believe, erstwhile it comes to the indebtedness limit, it has been done successful a bipartisan mode implicit the years and decades,” Jean-Pierre told reporters. “And it should beryllium done successful a bipartisan way. And it should beryllium done without conditions. This is important here.”

U.S. banal markets ended Friday successful the green, arsenic the 4 benchmark banal indexes successful the U.S. — the Dow Jones Industrial Average (DJIA), S&P 500, Nasdaq Composite, and Russell 2000 each closed higher. Additionally, the apical 3 traded precious metals successful the satellite — gold, silver, and platinum — person been rallying successful caller times.

The New York spot terms for golden connected Friday was astir $1,921.60 per ounce, up 1.26%, and silver’s terms per ounce was astir $24.38 astatine the extremity of Friday. The planetary cryptocurrency marketplace headdress besides roseate 4.1% higher connected Friday, with BTC jumping supra the $21,000 per portion zone. On Saturday, Jan. 14, 2023, bitcoin’s price is coasting on conscionable beneath the $21K range.

What bash you deliberation astir Yellen’s missive to Congress urging lawmakers to summation the spending limit? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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