US Approaches $36 Trillion Debt Ceiling Tuesday

U.S. Treasury Secretary Janet Yellen announced that the U.S. will hit its $36 trillion debt ceiling on January 21, prompting the Treasury to implement 'extraordinary measures' to avoid default. These measures include suspending investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund. The urgency comes as the deadline coincides with the transition to President-elect Donald Trump’s administration, raising pressures on a divided Congress to act. Historically, addressing the debt ceiling has been bipartisan, but current partisan divisions, particularly among Republicans, complicate the prospect of a swift resolution. Yellen emphasized the uncertainty surrounding how long these measures will suffice, urging lawmakers to increase or suspend the debt limit to prevent economic repercussions. Failure to address the debt ceiling could result in severe economic consequences, including a potential government default.