Debt Ceiling: Here We Go Again
On January 13, 2023, U.S. Secretary of the Treasury, Janet Yellen, sent a letter to Congressional leadership to inform them that the outstanding debt of the United States was projected to reach its statutory limit of $31.381 trillion on January 19, 2023. When the limit was reached, the Treasury had to start taking extraordinary measures to prevent the United States from defaulting on its obligations.
The extraordinary measures may include, but are not limited to the following:
- Redemption of existing and the suspension of new investments within the Civil Service Retirement and Disability Fund (CSRDF) and the Postal Service Retiree Health Benefit Fund (Postal Fund)
- Suspension of reinvestment of the Government Securities Investment Fund (G Fund) of the Federal Employees Retirement System Thrift Savings Plan
The U.S. Department of Treasury has the authority to take these measures because it has been mandated by Congress to safeguard the financial security of the United States. Once the debt limit stalemate ends, the above three funds will be made whole.
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