Yellen Says Treasury Will Take "Extraordinary Measures" To Prevent Default

US Treasury Secretary Janet Yellen has written to Congressional leadership stating that the Treasury Department will take, "extraordinary measures to prevent the United States from defaulting on its obligation," warning that ,"failure to meet the government’s obligations would cause irreparable harm to the US economy, the livelihoods of all Americans, and global financial stability."

• The letter reads: "I am writing to inform you that beginning on Thursday, January 19, 2023, the outstanding debt of the United States is projected to reach the statutory limit. Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations."
• The two extraordinary measures Treasury anticipates implementing this month:
• 1: "Redeeming existing, and suspending new, investments of the Civil Service Retirement and Disability Fund (CSRDF) and the Postal Service Retiree Health Benefits Fund (Postal Fund)."
• 2: "Suspending reinvestment of the Government Securities Investment Fund (G Fund) of the Federal Employees Retirement System Thrift Savings Plan."
• Yellen writes: "Congress has expressly provided Treasury with authority to take these actions, and prior Treasury Secretaries have used these measures..."