Array
Treasury Secretary Janet Yellen, in a letter to Congress on Thursday, said the U.S. has reached its debt limit, and has begun resorting to «extraordinary measures» so the government can continue paying its bills.
Yellen had already previously warned the U.S. would reach its debt limit on Thursday but had said the Treasury Department was preparing a contingency plan to avoid a default on the country’s debt.
The special measures being undertaken, including suspending investments in the Civil Service Retirement Fund, are essentially accounting maneuvers to avoid breaching the country’s borrowing limit.
The U.S. economy runs a deficit, hence it needs to borrow money to pay its bills. Currently the U.
