Yellen says Treasury will extend ‘extraordinary measures’ until Dec. 3 debt-ceiling deadline

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Yellen says Treasury to extend extraordinary measures to keep government-funded

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Treasury Secretary Janet Yellen told Congressional leaders on Monday that she would extend extraordinary cash management measures to temporarily finance the US government until December 3, raising or suspending debt limits for lawmakers or first-time defaulters. New time limit for taking risks.

Economic deadline before Congress before the end of the year

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Congress last week approved an increase in the short-term debt limit, raising the debt limit by $480 billion, after a protracted partisan battle. But the agreement – which Yellen said offers “temporary relief” – did nothing to resolve the widespread standoff between Democrats and Republicans over the debt, potentially leading to another showdown for the end of the year.

“It is imperative that Congress act to raise or suspend the debt limit in a manner that provides long-term certainty that the government will meet all of its obligations,” Yellen wrote. Letter.

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NS current credit limit is approximately $28.4 trillion.

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For months, GOP lawmakers attempted to raise or suspend debt limits on Democrats, arguing that with a power monopoly in Washington, the party should go it alone using the budget reconciliation process. . Democrats counter that there was not enough time to use reconciliation with America and pointed to a catastrophic default and noted that they had twice voted with Republicans to suspend the ceiling during the Trump administration.

Despite the deal, Senate Minority Leader Mitch McConnell has not given up on his demand that Democrats eventually use conciliation to extend the limit beyond December — and warned he would not help raise the debt limit again.

“I will not favor any future attempt to minimize the consequences of Democratic mismanagement,” McConnell wrote. in a bitter letter addressed to President Biden. “Your lieutenants on Capital Hill now have time to claim they lack to address the debt ceiling.”

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If the US fails to raise or suspend the debt limit, it will eventually have to temporarily default on some of its obligations, which could have serious and negative economic effects. Interest rates are likely to rise, and demand for treasuries will decline; Even the risk of default can lead to an increase in the cost of borrowing.

“America has always paid its bills on time,” Yellen wrote In a recent Wall Street Journal op-ed. “But the overwhelming consensus among economists and Treasury officials on both sides is that failing to raise the debt limit will result in widespread economic catastrophe.”


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