Last Thursday Treasury Secretary Yellen followed up on her earlier letter to Congress and officially notified them that the US had reached its statutory debt ceiling limit and that she, like her predecessors, would start using certain “extraordinary measures” to make sure the ceiling isn’t breached.  Here is a link to the official communication from the Secretary to the Congress from last Thursday.

During the Trump Administration Republicans on three occasions took care of the debt ceiling without any grand bargain to reduce government spending.  This year with Republicans controlling the House Speaker, McCarthy has insisted that in order to get Republican support for a debt ceiling suspension or increase there will need to be negotiations between the House Republicans and the White House.

Secretary Yellen has stated that the Treasury Department should be able to avoid a US Government default until at least June by using “extraordinary measures.”   While House Republicans have been very public about their demand that the White House and Republicans negotiate a spending reduction package, to date Republicans have not presented a list of what areas they would like to cut. Last week the path to a resolution was further complicated when former Pr...

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