Treasury expands ‘extraordinary measures’ as debt ceiling hits
WASHINGTON, January 24 – RIA Novosti. According to a letter by US Treasury Secretary Janet Yellen to House Speaker Kevin McCarthy, the US Treasury Department announced that investments in the State Securities Fund were halted due to the nation’s public debt ceiling being reached.
In the appeal, “I have determined that as of January 23, I cannot fully invest in the Government’s Securities Fund (G Fund) savings fund due to the government’s built-in debt.”
As explained in the letter, the State Securities Fund is part of the federal employee pension system and investment in this fund must be suspended to prevent government debt from exceeding the set level.
The US filled its borrowing limits in January and took “extraordinary measures”; the first was the suspension of contributions to social and pension funds.
Yellen said that the government’s failure to fulfill its obligations in this regard will cause recession in the US economy and trigger a global financial crisis.
I am Emma Sickels, a highly experienced journalist specializing in news and economy. As an author at News Unrolled, I cover the latest trends in the economic sector and provide readers with valuable insights into its complexities. My work has been featured in various media outlets such as The New York Times, USA Today, Bloomberg Businessweek and many more.