U.S. Treasury Secretary Janet Yellen activated another extraordinary cash management measure on Tuesday to avoid breaching the federal debt limit, suspending daily reinvestments in a large government retirement fund that holds Treasury debt, the department said.
In a letter notifying Congress of the move to access the Government Securities Investment Fund (G Fund), Yellen did not alter a projected early June deadline for when the Treasury may no longer be able to pay the nation’s bills without an increase in the $31.4 trillion statutory borrowing limit.
Yellen last week suspended reinvestments in two other retirement and health benefit funds as the government nominally reached the debt ceiling. Republicans who now control the House have threatened to oppose a debt ceiling increase without spending reductions from the Biden administration.
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