US Treasury to implement 'extraordinary measures' following Trump inauguration
According to Treasury Secretary Janet Yellen, the United States will cease contributions to federal retirement funds in an effort to prevent default. Read Full Article at RT.com.
TroibNews 
US Treasury Secretary Janet Yellen has informed Congress that her department will be pausing retirement payments in an effort to prevent a default.
Yellen announced that the Treasury will implement “extraordinary measures” to keep the US from reaching its national debt limit on Tuesday, just a day after President-elect Donald Trump assumes office.
In a letter to Congress on Friday, she indicated that the US is expected to reach its approximately $36 trillion debt limit between January 14 and January 23, which could potentially lead to a default.
To mitigate this situation, Yellen revealed that the Treasury Department will employ various accounting tactics, including halting payments into civil service retirement accounts until an agreement is reached between Congress and the president to raise the debt ceiling again. However, she did not specify the duration for which her measures would delay a default.
During President Joe Biden’s administration, the US debt ceiling was increased three times. Last month, Trump urged House Republicans to include another increase in a stopgap spending bill; however, the proposal faced defeat from numerous fiscal conservatives within the GOP.
Trump has continuously advocated for the complete abolition of the debt ceiling to prevent these recurring conflicts, contending that the limit—intended to curb government borrowing—is ineffective when it is frequently raised. “It doesn’t mean anything, except psychologically,” he stated in an interview with NBC News last month. “The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge.”
Scott Bessent, Trump’s nominee to succeed Yellen, has mentioned that he would collaborate with Congress to repeal the debt ceiling if directed by Trump.
Rohan Mehta for TROIB News
Yellen announced that the Treasury will implement “extraordinary measures” to keep the US from reaching its national debt limit on Tuesday, just a day after President-elect Donald Trump assumes office.
In a letter to Congress on Friday, she indicated that the US is expected to reach its approximately $36 trillion debt limit between January 14 and January 23, which could potentially lead to a default.
To mitigate this situation, Yellen revealed that the Treasury Department will employ various accounting tactics, including halting payments into civil service retirement accounts until an agreement is reached between Congress and the president to raise the debt ceiling again. However, she did not specify the duration for which her measures would delay a default.
During President Joe Biden’s administration, the US debt ceiling was increased three times. Last month, Trump urged House Republicans to include another increase in a stopgap spending bill; however, the proposal faced defeat from numerous fiscal conservatives within the GOP.
Trump has continuously advocated for the complete abolition of the debt ceiling to prevent these recurring conflicts, contending that the limit—intended to curb government borrowing—is ineffective when it is frequently raised. “It doesn’t mean anything, except psychologically,” he stated in an interview with NBC News last month. “The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge.”
Scott Bessent, Trump’s nominee to succeed Yellen, has mentioned that he would collaborate with Congress to repeal the debt ceiling if directed by Trump.
Rohan Mehta for TROIB News
