Treasury not expecting extraordinary measures on Jan 2 to prevent US from defaulting
WASHINGTON, Dec 27 (Reuters) - The U.S. Treasury does not expect that it will be necessary to start taking extraordinary measures on Jan. 2 to prevent the United States from defaulting on its obligations, Treasury Secretary Janet Yellen said in a letter to lawmakers on Friday.
Yellen wrote on Friday the United States' debt is expected to decrease by about $54 billion on Jan. 2 "due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments."
"Treasury currently expects to reach the new limit between January 14 and January 23, at which time it will be necessary for Treasury to start taking extraordinary measures," Yellen wrote, while urging the Congress to act to protect the credit of the United States.
(Reporting by Jasper Ward and Kanishka Singh)
((Jasper.Ward@thomsonreuters.com;))
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