America's debt will cross the threshold of $31 trillion on January 19

US Treasury Secretary Janet Yellen said today, Friday, that the United States is likely to reach the maximum debt limit legally allowed at $ 31.4 trillion on January 19, which will force the Treasury Department to implement exceptional liquidity management measures that can prevent debt default even early June.

"Once the limit is reached, the Treasury Department will need to begin implementing certain extraordinary measures to prevent the United States from defaulting on its obligations," Yellen said in a letter to congressional leaders urging lawmakers to quickly raise the debt ceiling.

"While the Treasury cannot currently estimate how long extraordinary measures will enable us to continue paying government obligations, it is unlikely that cash and extraordinary measures will be exhausted before early June," she added in the letter.

Yellen said in her letter to new House Speaker Kevin McCarthy, who belongs to the Republican Party, that the Treasury Department expects this month to suspend new investments in two government funds for retirement and health care, in addition to suspending reinvestment in the Government Securities Investment Fund, which is part of a savings plan for government employees. .

"The use of extraordinary measures enables the government to meet its obligations only for a limited period," Yellen wrote to McCarthy and other congressional leaders.

"Therefore, it is imperative that Congress act in a timely manner to increase or suspend the debt ceiling. Failure to meet the government's obligations may cause irreversible damage to the US economy, to American livelihoods, and to global financial stability," she added.

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