After hitting the debt limit on Thursday, Janet Yellen, the Treasury Secretary announced to Congress it had reached its limit and the Treasury would begin using “extraordinary measures.”
These measures include “suspending some investments and exchanging different types of debts” according to New York Times.
\u201cThe US will hit its debt ceiling today.\n\nJanet Yellen said she'll implement "extraordinary measures" to keep the gov from defaulting on its debt until probably early June.\n\nStill, June isn't that far away. Congress needs to work out a deal pronto to raise the gov's borrowing cap.\u201d
The responsibility to either raise the debt ceiling or cease borrowing money falls on Congress.
Notoriously, Congress has a difficult time agreeing on raising the debt ceiling. Historically, Republicans will use the debt ceiling debate to leverage what they want - spending cuts.
In the past when the situation has arisen, it has created conflict between the President and Congress, often when there is a Democratic president and a Republican majority in the House. This is the current situation.
Until Congress finds a solution, the Treasury will execute its “extraordinary measures” however it could lead to the US defaulting on debt which would affect the economy.
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