U.S. will hit its debt limit Thursday, start taking steps to avoid default, Yellen warns Congress

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Treasury Secretary Janet Yellen on Friday notified Congress that the U.S. will reach its statutory debt limit next Thursday.After that, the Treasury Department will begin “taking certain extraordinary measures to prevent the United States from defaulting on its obligations,” Yellen wrote in a letter to House Speaker Kevin McCarthy, R-Calif.While Treasury, “is not currently able” to estimate how long those emergency actions will allow the U.S. to pay for government obligations, “It is unlikely that cash and extraordinary measures will be exhausted before early June,” she wrote.Yellen said it is “critical that Congress act in a timely manner to increase or suspend the debt limit.””Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihood …

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