Treasury Department taking ‘extraordinary measures’ as US hits $38 trillion debt limit

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Treasury Department taking 'extraordinary measures' as US hits $38 trillion debt limit

The federal government has come up against its borrowing limit of more than $38.3 trillion, Treasury Secretary Janet Yellen announced Thursday, setting up an-early June fight to avoid a potential US default.

In a letter to House Speaker Kevin McCarthy (R-Calif.), Yellen said the Treasury had begun “extraordinary measures” to avoid breaching the limit and keep normal government operations going through June 5. However, Yellen added that “the period of time that extraordinary measures may last is subject to considerable uncertainty … I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”

House Republicans have demanded cuts in spending in exchange for increasing the debt ceiling, as has been done approximately 80 times since the 1960s. However, the Biden administration has flatly refused to consider any reductions.

This is a developing story, check for updates

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