Yellen Says US Will Hit Debt Ceiling Mid-January, Forcing Treasury to Employ ‘Extraordinary Measures’

Extraordinary measures, often described as accounting maneuvers, allow the Treasury to free up cash and delay default.

Secretary of the Treasury Janet Yellen gives remarks at an event celebrating the Community Development Financial Institutions Fund at the U.S. Treasury Department in Washington on Nov. 21, 2024. Anna Moneymaker/Getty Images

Treasury Secretary Janet Yellen has warned that the United States will hit its statutory debt ceiling around the middle of January, a development she said will prompt the Treasury to resort to “extraordinary measures” to prevent the government from defaulting on its obligations.

Yellen outlined the looming fiscal challenge in a Dec. 27 letter to congressional leaders, urging them to act to protect the nation’s economic credibility and preserve fiscal stability.