**U.S. Treasury Secretary Warns of “Extraordinary Measures” if Debt Ceiling Not Raised**
U.S. Treasury Secretary Janet Yellen has issued a stern warning to lawmakers, stating that if the debt ceiling is not raised or suspended, she may be forced to take “extraordinary measures” to keep the federal government afloat. This warning comes as House Speaker Mike Johnson addresses the thorny issue of debt ceiling, which poses a significant challenge to the incoming Trump administration and Johnson himself.
In a letter to members of Congress, Yellen urged lawmakers to take action to protect the full confidence and credibility of the United States. She emphasized that “extraordinary measures” will be needed between January 14 and 23, highlighting the urgency of the situation.
The debt ceiling is a contentious issue that has the potential to undermine the stability of the government and the economy. Raising the debt ceiling without support from Democrats would require a significant number of Republicans to vote in favor of the measure, which could be a challenging task. Historically, hardline members of the Republican Party have been known to reject deals that do not meet their ideological demands.
The slim Republican majority in the House of Representatives makes it even more difficult for Johnson to find a solution. If a deal is not reached, Johnson’s role as speaker could be compromised, leading to a chain of events that could have far-reaching consequences.
One of the most significant consequences of a failure to raise the debt ceiling could be the inability of the House to certify the 2024 election results on January 6. This is because the newly elected speaker would need to swear in members before they can begin their work. If this process is delayed, it could have significant implications for the smooth transition of power and the stability of the government.
The Constitution requires that each new session of Congress begin at noon on January 3. The suspension of the debt ceiling is currently expected to end on January 2, leaving a narrow window for lawmakers to reach a deal.
In conclusion, the debt ceiling issue is a critical challenge that requires immediate attention from lawmakers. Failure to raise or suspend the debt ceiling could have far-reaching consequences for the government and the economy. As Treasury Secretary Yellen has warned, “extraordinary measures” may be necessary to keep the federal government afloat, but these measures should only be used as a last resort.
**FAQs**
Q: What are “extraordinary measures”?
A: “Extraordinary measures” refer to the actions that the Treasury Secretary may take to manage the government’s finances in the event of a debt ceiling crisis. These measures may include suspending certain government payments, delaying investments, or using cash reserves.
Q: What are the consequences of failing to raise the debt ceiling?
A: Failing to raise the debt ceiling could lead to a range of consequences, including a government shutdown, default on government debts, and damage to the country’s credit rating.
Q: How does the debt ceiling work?
A: The debt ceiling is the maximum amount of debt that the federal government is allowed to accumulate. The debt ceiling is set by Congress and is typically raised or suspended periodically to allow the government to continue borrowing and spending.
Q: Who is responsible for raising the debt ceiling?
A: The responsibility for raising the debt ceiling lies with Congress. The House and Senate must agree on a measure to raise the debt ceiling before it can be sent to the President for signature.
Q: What is the impact of a debt ceiling crisis on the economy?
A: A debt ceiling crisis can have significant negative impacts on the economy, including higher interest rates, reduced consumer and business spending, and increased uncertainty.
