Official announcements from the U.S. Treasury

Yellen: U.S. to Hit Debt Limit Jan 14-23, Will Need Extraordinary Measures

Dec 27, 2024, 10:29 PM

US Treasury Secretary Janet Yellen, in a letter to Congress, has warned that the United States is likely to reach its new debt limit between January 14 and January 23, 2025. When the current debt limit suspension expires on January 2, 2025, the new limit will be set based on the amount of outstanding debt as of January 1. While the Treasury does not expect it will be necessary to start taking extraordinary measures on January 2, it will need to begin these special accounting maneuvers when the new limit is reached in mid-January to prevent a default. Yellen, who is due to leave her post soon, urged Congress to protect the full faith and credit of the United States by raising or suspending the debt ceiling. Analysts project that the Treasury could exhaust these extraordinary measures by July or August, emphasizing the urgency for legislative action.