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U.S. Treasury launches debt limit cash management measures

Published 01/19/2023, 10:43 AM
Updated 01/19/2023, 10:46 AM
© Reuters. The Treasury Department is pictured in Washington, U.S., April 25, 2021. REUTERS/Al Drago

WASHINGTON (Reuters) - The U.S. Treasury Department on Thursday began using extraordinary cash management measures to continue borrowing under the federal debt limit, Treasury Secretary Janet Yellen told congressional leaders.

© Reuters. The Treasury Department is pictured in Washington, U.S., April 25, 2021. REUTERS/Al Drago

The Treasury began a "debt issuance suspension period" to last through June 5 that suspends investments in the Civil Service Retirement and Disability Fund which are not immediately required to pay beneficiaries, Yellen said in a letter to House of Representatives Speaker Kevin McCarthy and other congressional leaders. She said she took similar measures for the Postal Service Retiree Health Benefits Fund.

"As I stated in my January 13 letter, the period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future. I respectfully urge Congress to act promptly to protect the full faith and credit of the United States."

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