China News Service, Washington, January 24 (Reporter Sha Hanting) U.S. Treasury Secretary Yellen sent another letter to the leaders of both parties in Congress on the 24th local time, saying that the Treasury Department will take additional unconventional measures to avoid the federal government from defaulting on its debt. .
Yellen said in the letter that because the debt of the US federal government has reached the debt ceiling, in order to ensure that the federal government fulfills its obligations, the Treasury Department will not be able to fully use the Government Securities Investment Fund (G-Fund) for investment.
The Government Securities Investment Fund is part of the federal government's pension system.
The U.S. federal government debt reached the statutory debt limit of $31.4 trillion on the 19th of this month.
Yellen said in a letter to congressional leaders on the 19th that the Treasury Department will start a "suspended bond issuance period" from January 19 to June 5.
During this period, the Treasury will suspend new funding for the Civil Service Retirement and Disability Fund and the Postal Retirees Health Benefit Fund.
Yellen said recently that if the U.S. Congress does not raise the debt ceiling in time, the federal government will default on its debt, which may lead to a downgrade of the U.S. sovereign debt rating, weaken the dollar's status as the global reserve currency, and may "create a global financial crisis." ".
On the same day, U.S. President Biden held talks with the Democratic leaders of both houses of Congress on the debt ceiling issue at the White House.
The White House has repeatedly stated that Congress must unconditionally resolve the debt ceiling issue.
The Speaker of the House of Representatives, Republican McCarthy, said that it is "irresponsible" to only raise the debt ceiling, and that a "reasonable and responsible attitude" should be adopted for the government budget, and the budget should be reduced in terms of federal medical insurance and social welfare.
According to US media reports, the White House will invite McCarthy to the White House in the near future to negotiate on the debt ceiling issue.
The US media believes that the current House and Senate are divided between the Democratic Party and the Republican Party, and negotiations to raise the government debt ceiling will inevitably be "difficult."