US Treasury to Deploy Emergency Plan as Debt Crisis Looms

“US Treasury to Deploy Emergency Plan as Debt Crisis Looms”
The United States Treasury is set to implement emergency measures starting January 21, 2025, as the federal government approaches its debt ceiling.
This announcement, reported by The New York Times, has sparked concerns over potential financial instability.
Treasury Secretary Janet Yellen warned that the country would reach its new debt limit between January 14 and January 23, following the end of the current pause on January 2. The new ceiling will be based on the total debt recorded on January 1.
In a letter to Congress, Yellen emphasized the urgency of legislative action to prevent a default.
“Failure to address this issue in a timely manner could lead to catastrophic consequences for the U.S. economy,” she cautioned.
The emergency measures, which are designed to buy time for Congress to act, are expected to last until March 14.
However, Yellen highlighted “significant uncertainty” in managing federal payments and revenues during this period.
Economists and lawmakers have raised alarms over the potential fallout of a default, which could undermine global confidence in the U.S. financial system.
As negotiations loom, all eyes will be on Congress to avert a crisis that could ripple through global markets.
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