U.S. Government will Hit its Debt Limit Thursday

Treasury Secretary Janet Yellen on Friday notified Congress that the U.S. government will reach its statutory debt limit next Thursday.

After that, the Treasury Department this month will begin “taking certain extraordinary measures to prevent the United States from defaulting on its obligations,” Yellen wrote in a letter to new House Speaker Kevin McCarthy, R-Calif.

The Treasury “is not currently able” to estimate how long those emergency actions will allow the U.S. to pay for government obligations, she wrote.

But, “It is unlikely that cash and extraordinary measures will be exhausted before early June,” Yellen added.

Congress in December 2021 increased the federal debt limit to about $31.4 trillion.