Additional Coverage:
- Janet Yellen says Treasury Department will need to take ‘extraordinary measures’ to avoid debt ceiling next month (nbcnews.com)
Debt Ceiling Deadline Approaches
Treasury Secretary Janet Yellen has warned Congress that the government will reach its debt limit between January 14th and 23rd. Unless action is taken, the government may have to implement “extraordinary measures” to avoid default.
Partisan Divide
The looming debt ceiling fight is expected to occur early next year. Traditionally, Republicans oppose raising or eliminating the debt ceiling due to concerns about government spending. Democrats, on the other hand, support raising or eliminating the limit.
Trump’s Shift
Unexpectedly, President-elect Donald Trump recently expressed support for abolishing the debt ceiling. He demanded that Congress extend or abolish it in an end-of-year spending bill, but 170 Republicans voted against his demand.
Consequences of Default
If the government defaults on its debt, it will be unable to pay its bills and could face serious consequences. The deadline may shift, but the debt ceiling remains a significant issue that the incoming administration must address.