She says steps must be taken to avoid default.
Treasury Secretary Janet Yellen has notified Congress that the statutory debt limit of the U.S. will be reached this Thursday. She stated that her department would begin “taking certain extraordinary measures to prevent the United States from defaulting on its obligations.”
Secretary Yellen said that she is unable to estimate how long the emergency actions will provide for the payment of government obligations. “It is unlikely that cash and extraordinary measures will be exhausted before early June.”
She wrote in a letter to House Speaker Kevin McCarthy, “critical that Congress act in a timely manner to increase or suspend the debt limit. Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.” She added, “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”
As the Lord Leads, Pray with Us…
- For Secretary Yellen as she oversees measures to cover the government’s obligations.
- For Speaker McCarthy as he works with members of the House on the federal budget and debt ceiling.
- For discernment for members of Congress as they evaluate options regarding the nation’s finances.
Sources: NY Times, CNBC
