Treasury Secretary Janet Yellen Urges Congress to Raise Debt Limit Before January 19th Deadline to Avoid Financial Armageddon

The United States is set to hit its debt limit on January 19th, according to Treasury Secretary Janet Yellen. In a letter addressed to congressional leaders, Yellen warned that the government must not default on any obligation of the United States and urged them to raise the debt limit as soon as possible.

The debt limit is the maximum amount of money the federal government is allowed to borrow, and is set by Congress. If the debt limit is not raised, the US could default on its debt, which economists have warned could lead to “financial Armageddon.”

The Treasury Department said Friday that the US will reach the debt limit on January 19th, and “extraordinary measures” will need to be taken in order to avoid a default. This sets up one of the first major battles on Capitol Hill after Republicans took control of the House.

Yellen has urged Congress to act quickly to raise the debt limit, and has warned that failure to do so could have serious economic consequences. It remains to be seen how Congress will respond to Yellen’s warning, and whether they will be able to come to an agreement on raising the debt limit in time to avoid a default.