The US administration expects the US national debt to reach its ceiling between January 14 and 23, and the authorities will be forced to take emergency measures to prevent bankruptcy. This is stated in a published letter from US Treasury Secretary Janet Yellen, sent to Congressional leaders.
„As you know, the debt limit is the total amount of money that the US government is allowed to borrow to meet its existing legal obligations, including payment of benefits, military salaries, interest on the national debt, tax refunds, and other payments In June 2023 "... a law was passed that suspended the debt until January 1, 2025," she noted.
The Treasury Department does not expect that emergency measures will have to be taken on January 2 to prevent the United States from defaulting. The department expects the new limit to be reached between January 14 and 23, and then emergency measures will have to be taken," Yellen stressed. She urged Congress to take all necessary measures. The US national debt is about $36.2 trillion.
In January 2023, the US debt ceiling, set by law at $31.4 trillion, was exceeded. After that, the country's Treasury Department was forced to resort to emergency measures to continue its financial operations. The US administration urged Congress to increase the debt limit. Republicans, who control the House of Representatives, agreed to raise the debt ceiling, but on the condition that budget spending be significantly reduced. On June 3, US President Joe Biden signed a bill, previously approved by Congress, to raise the ceiling.