Let the suspense begin!
The Treasury Department announced that it is executed extraordinary emergency measures after the two-year suspension of the debt ceiling expired on July 31. The Treasury will now attempt to conserve enough funds to avoid surpassing the federal borrowing limit.
By employing these measures, Treasury Secretary Janet Yellen can cover the government’s tabs without floating new debt.
How long? About three months.
Anything longer, the U.S. government would risk defaulting on its obligations unless Congress chooses to either raise or suspend the borrowing limit.
Should Uncle Sam default, interest rates would spike.
The odds of this happening? Without anyone caring for the budget in the corridors of power, the chances are slim to none.
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