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Tuesday, February 7, 2023

US Treasury suspends further payments and urges Congress to raise debt ceiling

US Treasury Secretary, Janet Yellenannounced this tuesday Suspension of further investment in a savings fund for federal employees and urged the US Congress to raise the debt ceiling.

“I respectfully urge Congress to act quickly Defend the full faith and credit of the United States of America“, he told in a letter sent to Congress.

Thus, as of January 23 and after the legal debt limit is reached on the 19th, the Treasury Department will stop investing in the Thrift Savings Fund’s investment in government securities (Fund G), the system for federal retirement benefits. is part of. employees.

Regarding this extraordinary measure, Yellen recalled, “The law governing Fund G’s investments explicitly authorizes the Secretary of the Treasury to suspend investments to avoid breaching the indebtedness limit.”

according to the law, Fund G will be completed once the loan limit is increased or suspended So retirees and federal employees will not be affected by this action, he said.

The United States government reached its legal debt limit last Thursday, causing the Treasury Department to resorting to “extraordinary measures” to pay bills, Suspending certain payments to the federal Employees’ Retirement Fund and Postal Worker Social Security.

Yellen recalled that the use of these special financial instruments could be extended until June 5.

debt ceiling is the total amount of the United States government You are authorized to borrow to meet your existing legal obligations and be able to pay Social Security and Medicare benefits, military pay, interest on the national debt, tax refunds, and other payments.

From time to time, the United States faces default on its national debt because, unlike other countries, the US government can only issue debt up to a limit set by Congress, which has the power to increase that limit. as he thinks fit.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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