Treasury Secretary Janet Yellen urges Congress to increase debt ceiling and 'protect the full faith and credit' of the U.S.
In a letter to congressional leaders, Treasury Secretary Janet Yellen on Monday implored lawmakers to "protect the full faith and credit of the United States" by raising or suspending the U.S. debt ceiling, something she had previously requested be handled by Aug. 2, CNBC reports.
The letter also notified leaders that the Treasury Department had begun using "extraordinary measures" — or emergency cash conservation steps — to keep from breaching the federal borrowing limit after it went back into effect over the weekend, per CNBC and The Wall Street Journal.
"As I stated in my July 23 letter, the period of time that extraordinary measures may last is subject to heightened uncertainty related to the economic impact of the pandemic," wrote Yellen. "Therefore, I respectfully urge Congress to protect the full faith and credit of the United States by acting as soon as possible."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The so-called "extraordinary measures" will reportedly buy the Treasury some time — but after that, Congress "will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations," writes CNBC. Defaulting, which the federal government has never done, would have "disastrous effects" on the U.S. economy.
Lindsey Piegza, chief economist for Stifel, told CNBC that "from a procedural standpoint," the extraordinary measures aren't "much of a concern." However, she added "the implication is a further showdown in Washington eroding the average American's confidence in a cohesive, functioning government" that simultaneously highlights "ongoing infighting among policy officials" on both sides of the aisle. Read more at CNBC.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
Ottawa climate talks: can global plastic problem be solved?
In the spotlight Nations aim to draft world's first treaty on plastic pollution, but resistance from oil- and gas-producing countries could limit scope
By Harriet Marsden, The Week UK Published
-
Netherlands split on WFH for sex workers
Speed Read Councils concerned over 'nuisance' of at-home sex work, but others say changes will curb underground sex trade
By Arion McNicoll, The Week UK Published
-
'He adored Trump, and then rejected him'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Puffed rice and yoga: inside the collapsed tunnel where Indian workers await rescue
Speed Read Workers trapped in collapsed tunnel are suffering from dysentery and anxiety over their rescue
By Sorcha Bradley, The Week UK Published
-
More than 2,000 dead following massive earthquake in Morocco
Speed Read
By Justin Klawans Published
-
Mexico's next president will almost certainly be its 1st female president
Speed Read
By Peter Weber Published
-
North Korea's Kim to visit Putin in eastern Russia to discuss arms sales for Ukraine war, U.S. says
Speed Read
By Peter Weber Published
-
Gabon's military leader sworn in following coup in latest African uprising
Speed Read
By Justin Klawans Published
-
Nobody seems surprised Wagner's Prigozhin died under suspicious circumstances
Speed Read
By Peter Weber Published
-
Western mountain climbers allegedly left Pakistani porter to die on K2
Speed Read
By Justin Klawans Published
-
'Circular saw blades' divide controversial Rio Grande buoys installed by Texas governor
Speed Read
By Peter Weber Published