Absent congressional intervention, the federal government will soon reach its limit on the amount of money it’s authorized to borrow, according to U.S. Treasury Secretary Janet Yellen. The current limit was set on Dec. 16, 2021. If not raised (or suspended) once again, the limit will be met on Thursday, Jan. 19. “Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations,” Yellen said. She implored Congress to act swiftly, explaining that using certain measures is merely a short-term fix. “Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy,” Yellen said.
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