• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance Economic Policies

Treasury secretary says she’ll take ‘extraordinary measures’ day after Trump inauguration todayheadline

January 18, 2025
in Economic Policies
Reading Time: 4 mins read
A A
0
Treasury secretary says she’ll take 'extraordinary measures' day after Trump inauguration
10
SHARES
21
VIEWS
Share on FacebookShare on Twitter

Outgoing Treasury Secretary Janet Yellen is announcing that she’s planning to take “extraordinary measures” to save the U.S. economy beginning on January 21 — the day after President-elect Donald Trump will officially begin his second term in office.

Politico reported Friday that Yellen made the announcement in a letter to congressional leaders including House Speaker Mike Johnson (R-La.), Senate Majority Leader John Thune (R-S.D.), House Minority Leader Hakeem Jeffries (D-N.Y.) and Senate Minority Leader Chuck Schumer (D-N.Y.). The letter comes as the United States prepares to reach the statutory limit on borrowing, which Yellen wrote last month would happen between January 14 and January 23. She warned in that letter that the Department of the Treasury would need to take “extraordinary measures” in order to avoid a debt default, should Congress fail to raise the debt ceiling before then.

In her latest letter, Yellen said she would begin taking those “extraordinary measures” next Tuesday, which will reportedly include tapping into federal retirement funds that aren’t immediately needed to pay out benefits to retired postal workers and other federal employees. She also plans to temporarily suspend investments into those funds in order to keep the U.S. current on its debt service obligations.

READ MORE: ‘Start taking extraordinary measures’: Treasury secretary issues ultimatum to Mike Johnson

“The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. Government months into the future,” she wrote in her January 17 letter to Congress.

According to Politico, Yellen’s move could kick the can down the road to summer of 2025, meaning Congress wouldn’t need to pass legislation raising the debt ceiling for several more months. However, that could prove complicated for Speaker Johnson, who only barely managed to get the 218 votes necessary to keep his gavel earlier this month. Nearly a dozen far-right members of the House Republican Conference indicated that their support for Johnson was conditional, and would depend on whether he adheres to strict fiscal policy — like only agreeing to new federal spending if it was paired with offsetting budget cuts.

And because Johnson will have just a one-seat majority to work with assuming Reps. Elise Stefanik (R-N.Y.) and Mike Waltz (R-Fla.) join the Trump administration as United Nations ambassador and National Security Advisor respectively, it isn’t likely he’ll be able to raise the debt ceiling solely with Republican votes. This could mean that a debt ceiling increase — which is needed to keep the global economy stable — could potentially cost Johnson the speakership.

On Thursday, the Congressional Research Service (CRS) published a paper showing the U.S. had $36.1 trillion in debt, with $28.8 trillion of that debt “held by the public.” But the CRS emphasized in the first paragraph of that paper that the vast majority of debt held by the public is just U.S. Treasury securities. Institutional investors (like world governments and the super-rich) prefer U.S. Treasury securities to bank deposits, as the latter are only guaranteed up to $250,000 by the FDIC whereas U.S. Treasury securities are guaranteed by the full faith and credit of the U.S. government.

READ MORE: ‘I would lead the charge’: Trump says he agrees with Democrats on this major policy issue

“[W]e might want to look at the national debt from a different perspective. In particular, it seems more accurate to view the national debt less as form of debt and more as a form of money in circulation,” the Federal Reserve Bank of St. Louis wrote in 2020. “Investors value the securities making up the national debt in the same way individuals value money — as a medium of exchange and a safe store of wealth. The idea of having to pay back money already in circulation makes little sense, in this context.”

Should Congress fail to raise the debt ceiling and make the U.S. default on its debt service obligations, it could throw the global economy into chaos, as institutional investors across the world would suddenly no longer have their U.S. Treasury securities backed by the full faith and credit of the U.S. government. Trump has previously called for the abolition of the federal debt ceiling, saying “it doesn’t mean anything, except psychologically.”

The debt ceiling was initially created by Congress during World War I, after fiscal conservatives championed for its inclusion in the Second Liberty Bond Act of 1917. At the time, the U.S. was still bound to the gold standard, which President Franklin Delano Roosevelt did away with in the 1930s. President Richard Nixon ending the Bretton Woods Agreement in the 1970s officially delinked the U.S. dollar from gold. How much money is in circulation is now entirely up to Congress, which has the sole power to “coin money” under the U.S. Constitution.

Click here to read Politico’s full report.

READ MORE: (Opinion) What to say to a Republican who complains about the federal debt

Tags: daydebt ceilingextraordinaryinaugurationJanet YellenmeasuressecretaryShelltodayheadlineTreasuryTreasury SecretaryTrump
Previous Post

Eating Fiber Could Protect You From Infections. Here’s Why. : ScienceAlert todayheadline

Next Post

Why Altcoins Soared Higher This Week todayheadline

Related Posts

ET logo

Faridabad tragedy: How a 74-year-old fell to his death from 14th floor while watering plants todayheadline

June 25, 2025
6

Sri Lanka historic Nuwara Eliya building to be developed for tourism as post office todayheadline

June 25, 2025
6
Next Post

Why Altcoins Soared Higher This Week todayheadline

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Police ID man who died after Corso Italia fight

December 23, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Wayfair is selling a $1,206 lounge chair for just $257, and shoppers say it will turn your patio into 'a little oasis'

Wayfair is selling a $1,206 lounge chair for just $257, and shoppers say it will turn your patio into 'a little oasis' todayheadline

June 25, 2025
NATO leaders to back Trump defence spending goal at Hague summit

NATO leaders to back Trump defence spending goal at Hague summit todayheadline

June 25, 2025
Earth Is Pulsing Beneath Africa Where The Crust Is Being Torn Apart : ScienceAlert

Earth Is Pulsing Beneath Africa Where The Crust Is Being Torn Apart : ScienceAlert todayheadline

June 25, 2025

NASA to Welcome Fourth Private Astronaut Mission to Space Station

June 25, 2025

Recent News

Wayfair is selling a $1,206 lounge chair for just $257, and shoppers say it will turn your patio into 'a little oasis'

Wayfair is selling a $1,206 lounge chair for just $257, and shoppers say it will turn your patio into 'a little oasis' todayheadline

June 25, 2025
5
NATO leaders to back Trump defence spending goal at Hague summit

NATO leaders to back Trump defence spending goal at Hague summit todayheadline

June 25, 2025
7
Earth Is Pulsing Beneath Africa Where The Crust Is Being Torn Apart : ScienceAlert

Earth Is Pulsing Beneath Africa Where The Crust Is Being Torn Apart : ScienceAlert todayheadline

June 25, 2025
5

NASA to Welcome Fourth Private Astronaut Mission to Space Station

June 25, 2025
5

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Wayfair is selling a $1,206 lounge chair for just $257, and shoppers say it will turn your patio into 'a little oasis'

Wayfair is selling a $1,206 lounge chair for just $257, and shoppers say it will turn your patio into 'a little oasis' todayheadline

June 25, 2025
NATO leaders to back Trump defence spending goal at Hague summit

NATO leaders to back Trump defence spending goal at Hague summit todayheadline

June 25, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co