New measure of the US Treasury Department to avoid exceeding the debt limit

US Treasury Secretary Yellen has written a new letter to US House Speaker Kevin McCarthy regarding the debt limit.

Stating that the Treasury Department wrote to tell McCarthy about the debt limit transactions, Yellen claimed that because of the debt limit, the Savings Fund, which is part of the Federal Employees Pension System, could not be invested. completely in the State Securities. Investment fund as of yesterday.

Yellen pointed out that the regulation that regulates investments in the fund grants the Minister of Finance the power to suspend investments in the fund so as not to exceed the legal limit of indebtedness, and affirmed that her predecessors took the same measure in similar circumstances.

“I CALL ON CONGRESS TO ACT IMMEDIATELY”

Emphasizing that according to the law, the fund will be filled if the debt limit is increased or suspended, Yellen noted that retirees and federal employees will not be affected by this action.

“I urge Congress to take immediate action to preserve the full trust and reputation of the United States,” Yellen said. he used the phrase.

WHAT HAPPENED?

US Treasury Secretary Yellen, in her first letter to McCarthy on January 13, reported that the country was expected to hit its debt limit on January 19 and urged Congress to take “immediate action” to increase or suspend the debt limit.

In the second letter she sent on January 19, Yellen announced that the federal government had begun implementing “extraordinary” measures to prevent the country from defaulting after reaching the $31.4 trillion debt limit.

In this context, the US Department of the Treasury suspended new investments in the Public Service Disabled and Retirement Fund and the Postal Service Retirement Health Benefits Fund until June 5. (AA)