U.S. Treasury Forecasts No Need for Immediate Extraordinary Measures

Treasury Secretary Janet Yellen informed lawmakers that no extraordinary measures will be needed on January 2 to avert a U.S. default. The national debt is projected to decrease by $54 billion due to a trust fund redemption. However, extraordinary measures may be necessary between January 14 and 23.

Treasury Secretary Janet Yellen has reassured lawmakers that urgent fiscal interventions will not be required on January 2 to prevent the United States from defaulting on its obligations.

In a letter to Congress, Yellen announced a significant reduction in the national debt, estimating a $54 billion decrease owing to the redemption of nonmarketable securities from a federal trust fund linked to Medicare payments.

She cautioned that extraordinary measures might still become necessary between January 14 and January 23, pressing Congress to take preemptive actions to safeguard the nation's creditworthiness.

(With inputs from agencies.)