Janet Yellen. Credit: Kent Nishimura/Bloomberg.

Last Friday, outgoing Treasury Secretary Janet Yellen said that her department would start taking special accounting maneuvers, as of today, to avoid breaching the U.S. debt limit—and she urged lawmakers again to take steps to increase or suspend the statutory ceiling. In a letter to bipartisan congressional leaders, Yellen advised them “of the extraordinary measures that Treasury will begin using on January 21,” adding, “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.”

The letter marks the second notification in the latest tussle over the debt limit, which kicked back in on January 2. Congress suspended the debt ceiling in 2023 after a close-fought battle by lawmakers to avert a default on federal obligations. The limit is currently set at about $36 trillion.

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