Yellen Tells Congress That U.S. Will Run Out of Debt-ceiling Flexibility on Oct. 18
Treasury Secretary Janet L. Yellen on Tuesday told Congress that the United States will run out of flexibility to avoid breaching the debt limit on Oct. 18, setting a new deadline for lawmakers. Hours after her warning, a Senate effort to suspend the debt ceiling failed, showing how the issue remains politically fraught even as alarm grows from economic officials. Senate Republicans have said they would support a stand-alone measure to extend government funding, but they largely have opposed efforts by Democrats to suspend the debt ceiling, as part of a broader campaign to undermine President Biden’s economic agenda. Senate Democrats tried to raise the debt ceiling again Tuesday afternoon, but they were blocked by Senate Minority Leader Mitch McConnell (R-Ky.) and other Republicans. If Congress does not raise the limit, the Treasury Department will not have the capability to pay all of its bills. Yellen’s new letter lays out that this crunch will really tighten after Oct. 18. (
The Washington Post - Sept. 28, 2021)