Treasury Secretary , Warns US Is on Track , to Hit Debt Ceiling .
On January 13, Treasury Secretary Janet Yellen
told Congress that the United States
would hit the nation's debt limit next week.
ABC News reports that the announcement sets up a showdown between Democrats and Republicans who have vowed to
couple any increase in the debt ceiling with spending cuts.
According to Yellen, on January 19, the U.S.
will hit its $31.4 trillion borrowing limit.
While Treasury is not currently able
to provide an estimate of how long
extraordinary measures will enable us
to continue to pay the government’s
obligations, it is unlikely that cash
and extraordinary measures will
be exhausted before early June, Janet Yellen, U.S. Treasury Secretary, via ABC News.
Yellen reportedly added that the Treasury Department will begin implementing "extraordinary measures" to manage the government's cash flow.
ABC News reports that those
measures could include cutting
investments in some retirement funds.
Independent analysts reportedly
caution that the U.S. is not likely to hit
the debt ceiling until late summer or early fall.
In 2011, the U.S. hit the debt
ceiling, which ultimately cost
the nation its AAA rating