Yellen Announces Debt Ceiling Will be Reached During Biden’s Exit – President Trump Tells Congress to Act Now

Sundance reporting for Conservative Treehouse 

Treasury Secretary Janet Yellen has announced the U.S. debt ceiling is likely to be reached mid-January, while Joe Biden is still in office.  President Trump tells congress to deal with the issue now.

First, here’s Secretary Yellen:

WASHINGTON, Dec 27 (Reuters) – The U.S. Treasury Department may need to take “extraordinary measures” by as early as Jan. 14 to prevent the United States from defaulting on its debt, Treasury Secretary Janet Yellen told lawmakers in a letter on Friday.

Yellen urged lawmakers in the U.S. Congress to act “to protect the full faith and credit of the United States.”

U.S. debt is expected to decrease by about $54 billion on Jan. 2 “due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments,” she added.

She said: “Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures.”

Under a 2023 budget deal, Congress suspended the debt ceiling until Jan. 1, 2025. The U.S. Treasury will be able to pay its bills for several more months, but Congress will have to address the issue at some point next year. (more)

The Biden spending is already baked into the proverbial cake. Congress will have to raise the debt ceiling limit and President Trump is urging them to do it now, before he takes office.

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Specifically, because 38 republicans voted against the 2nd continuing resolution earlier this month, President Trump will face this debt ceiling mess on day one if it is not addressed before. They republicans knew this reality when they voted no.

Now President Trump is trying to avoid a potential mess early in his administration. No amount of spending cuts are going to stop the previously authorized spending. We are still going to hit the debt ceiling regardless of action from within the House to downsize government. Congress can freeze all spending, and we will still hit the debt ceiling.

It certainly looks like a crew of House republicans knew this would hamstring President Trump, and measures to avoid default are going to be needed.