Legislators need to increase or suspend the debt limit soon.
On Friday, Treasury Secretary Janet Yellen urged lawmakers to act on the nation’s debt limit, either increasing or suspending it as soon as possible. She warned that if Congress does not act by August 2, the Treasury Department will need to take “extraordinary measures” to prevent a U.S. default.
As the debate over raising the debt ceiling occurred in Congress, Secretary Yellen told House Speaker Pelosi in a letter that the outstanding debt of the United States will be at the statutory limit on Aug 1.
“Today, Treasury is announcing that it will suspend the sale of State and Local Government Series (SLGS) securities at 12:00 p.m. on July 30, 2021,” the treasury secretary said in the letter, also sent to other congressional leaders from both parties. The suspension will continue until the debt ceiling is suspended or raised, she said.
“If Congress has not acted to suspend or increase the debt limit by Monday, August 2, 2021, Treasury will need to start taking certain additional extraordinary measures in order to prevent the United States from defaulting on its obligations,” she added.
If an agreement is not reached regarding government spending cuts that would accompany an increase in the statutory debt limit, currently set at $28.5 trillion, the federal government may shutdown – which has happened three times in the past decade – or default on the national debt may occur.
As the Lord Leads, Pray with Us…
- For Congress as they consider what action to take regarding the nation’s debt limit to avoid a government shutdown.
- For Secretary Yellen as she evaluates measures to keep the nation afloat financially.
- For wisdom for all government officials regarding the spending programs and their impact on the nation’s debt levels.
Sources: Reuters, New York Times
