The US Treasury Secretary reveals: The United States will reach the new debt ceiling by this date

US Treasury Secretary Janet Yellen announced that her country may reach the new debt ceiling in mid-January, calling on Congress to “take action to protect confidence” in the country and its “credit.”

In June 2023, the US Congress approved a law allowing the public debt ceiling to be raised, which will prevent the United States from defaulting on its financial dues, until the beginning of 2025.

On January 2, a new limit will be set that corresponds to the amount of debt issued by the Treasury.

But reaching this new limit for the United States may lead to disputes, because the thorny issue of raising the limit has been raising increasing political tensions for years.

“The Treasury Department currently expects to reach the new ceiling between January 14 and 23, at which point it will have to initiate extraordinary measures,” Yellen said in a letter to Republican House Speaker Mike Johnson and other lawmakers.

These exceptional measures would allow the Treasury to continue financing government activities and avoid defaulting on its dues.

The minister indicated that her country will not immediately reach the maximum if the ceiling is not suspended on January 2, as the debt owed by the United States is expected to decrease by about $54 billion, thanks to the recovery of loan bonds.

The US Congress had raised the ceiling more than a hundred times to allow the government to fulfill its expenditure obligations.

Conservatives typically oppose the country’s massive borrowing, which currently exceeds $36 trillion, and many Republicans have never voted for the increase.

If the debt ceiling is not raised or suspended before the ministry exhausts its tools, the government may default on its dues, which would have widespread repercussions on the largest economy in the world.