Treasury takes another ‘extraordinary’ step on debt limit

By JOSH BOAK
Associated Press

WASHINGTON (AP) — U.S. Treasury Secretary Janet Yellen says in a letter to congressional leaders that she’s suspending the reinvestment of federal bonds in a government workers’ savings plan. That would be an additional “extraordinary” measure to buy time for President Joe Biden and Congress to raise the nation’s debt limit. The government bumped up against its legal borrowing capacity last Thursday. This has prompted Treasury to already take accounting steps regarding federal employees’ retirement and health care plans that will enable the government to stay open until roughly June. Biden and Republican House Speaker Kevin McCarthy have sharp differences over how to raise the debt ceiling, setting off the risk of a default.