On January 18th, outgoing US Treasury Secretary Yellen stated that the US Treasury Department will adopt special accounting practices starting from January 21st to avoid exceeding the debt ceiling. She once again urged lawmakers to take measures to raise or suspend the statutory cap. Yellen wrote in a letter to leaders of both parties in Congress on Friday, warning lawmakers that the Treasury Department will begin using unconventional measures from January 21st. Some bond market strategists expect that with Trump taking office again on January 20th, it will be easier to reach an agreement on suspending or lifting the cap, as Republicans control both houses of Congress and the White House. However, before the agreement is reached, the Ministry of Finance will need to take measures that have been repeatedly used for decades to avoid exceeding the upper limit. Scott Bessent, the Treasury Secretary nominated by Trump to replace Yellen, promised at a Senate hearing on Thursday that if his nomination is confirmed, the United States will not default on its debt.
Scan code to share