WASHINGTON
The US Treasury Department will take measures in mid-January to prevent the US from defaulting on its obligations, Secretary Janet Yellen said Friday.
“As a result, the debt is currently projected to temporarily decrease, and accordingly, Treasury does not expect that it will be necessary to start taking extraordinary measures on January 2 to prevent the United States from defaulting on its obligations.
“Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures,” Yellen said in a letter to lawmakers.
Yellen said US’ debt is expected to decrease by about $54 billion on Jan. 2 “mostly due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments.”
She also urged Congress to act to protect the full faith and credit of the US.
