{"id":16461,"date":"2023-01-14T19:56:13","date_gmt":"2023-01-14T19:56:13","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/treasury-secretary-yellen-urges-swift-action-to-increase-spending-limit-avert-default-on-us-obligations-economics-bitcoin-news\/"},"modified":"2023-01-14T19:56:13","modified_gmt":"2023-01-14T19:56:13","slug":"treasury-secretary-yellen-urges-swift-action-to-increase-spending-limit-avert-default-on-us-obligations-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/treasury-secretary-yellen-urges-swift-action-to-increase-spending-limit-avert-default-on-us-obligations-economics-bitcoin-news\/","title":{"rendered":"Treasury Secretary Yellen Urges Swift Action to Increase Spending Limit, Avert Default on US Obligations \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Janet Yellen, the U.S. secretary of the Treasury, sent a letter to Congress on Friday urging lawmakers to increase the spending limit. Yellen stressed that the country would reach its statutory debt limit on Jan. 19, 2023. She warned that \u201cfailure to meet the government\u2019s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.\u201d<\/strong><\/p>\n

Yellen Warns of Approaching Debt Limit, Urges Congress to Act Swiftly<\/h2>\n

On Friday, Jan. 13, 2023, the United States Treasury published a press release<\/a> featuring a letter written by Janet Yellen<\/a>, the 78th U.S. secretary of the Treasury. The letter is addressed to the House of Representatives and the newly appointed 55th speaker, Kevin McCarthy<\/a> (R-CA).<\/p>\n

In the letter<\/a>, Yellen warns of an approaching debt limit and urges Congress to act swiftly before the nation\u2019s massive borrowing authority of $31.4 trillion is depleted, to avoid defaulting on the country\u2019s obligations. Although, a temporary solution could be utilized to prevent default on U.S. obligations.<\/p>\n

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Janet Yellen, secretary of the U.S. Treasury (pictured above), sent identical letters to House Democratic leader Hakeem Jeffries, Senate majority leader Charles Schumer, Senate Republican leader Mitch McConnell, chairman of the House Committee on Ways and Means Jason Smith, ranking member of the House Committee on Ways and Means Richard E. Neal, chairman of the Senate Committee on Finance Ron Wyden, and ranking member of the Senate Committee on Finance Mike Crapo.<\/figcaption><\/figure>\n

The Treasury secretary insists that leveraging a process known as \u201cextraordinary measures\u201d could buy Congress more time to increase the U.S. borrowing authority. The process, which is like moving money from one account to another to make sure bills are paid on time, allows the Treasury Department to shuffle money around to prevent the U.S. from defaulting on its obligations. However, Yellen notes that this can only be done for a limited time.<\/p>\n

\u201cThe period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors,\u201d Yellen wrote. She added, \u201cIt is unlikely that cash and extraordinary measures will be exhausted before early June.\u201d The secretary of the Treasury continued:<\/p>\n

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I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.<\/p>\n<\/blockquote>\n

During a press briefing<\/a> on Friday, White House press secretary Karine Jean-Pierre<\/a> was questioned about the approaching debt limit, and she stated: \u201cWe believe, when it comes to the debt limit, it has been done in a bipartisan way over the years and decades,\u201d Jean-Pierre told reporters. \u201cAnd it should be done in a bipartisan way. And it should be done without conditions. This is important here.\u201d<\/p>\n

U.S. stock markets ended Friday in the green, as the four benchmark stock indexes in the U.S. \u2014 the Dow Jones Industrial Average (DJIA), S&P 500, Nasdaq Composite, and Russell 2000 all closed higher. Additionally, the top three traded precious metals in the world \u2014 gold, silver, and platinum<\/a> \u2014 have been rallying in recent times.<\/p>\n

The New York spot price for gold on Friday was approximately $1,921.60 per ounce, up 1.26%, and silver\u2019s price per ounce was around $24.38 at the end of Friday. The global cryptocurrency market cap also rose 4.1% higher on Friday, with BTC<\/a> jumping above the $21,000 per unit zone. On Saturday, Jan. 14, 2023, bitcoin\u2019s price<\/a> is coasting along just below the $21K range.<\/p>\n

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Americans<\/a>, Authority<\/a>, benchmark<\/a>, borrowing<\/a>, BTC<\/a>, Congress<\/a>, Cryptocurrency<\/a>, debt<\/a>, Default<\/a>, Economy<\/a>, financial stability<\/a>, gold<\/a>, House of Representatives<\/a>, Janet Yellen<\/a>, Karine Jean-Pierre<\/a>, kevin mccarthy<\/a>, Letter<\/a>, Limit<\/a>, Market Cap<\/a>, obligations<\/a>, platinum<\/a>, press release<\/a>, secretary of the Treasury<\/a>, silver<\/a>, Speaker<\/a>, spending<\/a>, Spot Price<\/a>, Stock Markets<\/a>, Treasury<\/a>, United States Treasury<\/a>, Yellen<\/a><\/div>\n<\/div>\n

What do you think about Yellen\u2019s letter to Congress urging lawmakers to increase the spending limit? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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