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Treasury will begin steps to avoid debt default as Trump takes office

  • Janet Yellen announced that the Treasury will start taking 'extraordinary measures' on Jan. 21 to prevent hitting the debt ceiling, as stated in her letter to congressional leaders.
  • The federal debt is approximately $36 trillion, and the Treasury expects to reach the debt limit between Jan. 14 and Jan. 23, according to Yellen's forecasts.
  • Congressional Republicans are divided over how to address the debt ceiling, with House Speaker Mike Johnson facing resistance from fiscally conservative members.
  • The extraordinary measures will last through March 14, but failure to act could lead to a first-ever default, which would likely cause global economic upheaval.
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  • 73% of the sources are Center
73% Center
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