The US Treasury warned about exceeding the national debt ceiling

The US Treasury secretary has warned Congress that the federal government will soon exceed the limit set for the debt ceiling.

The default will cause “irreparable harm” to the US economy, the well-being of its citizens and global financial stability, Janet Yellen warned, pointing out the need to take timely measures to increase public debt.

The head of the US Treasury called on the leaders of Congress to raise the ceiling of the national debt, the limit of which will be exhausted on January 19, Bloomberg reports, citing a letter from the minister. The current debt limit, or the total amount of debt the Treasury can issue to the public and other government agencies, is just under $31.4 trillion, the agency writes.

The National Debt Ceiling is the statutory limit on the US government’s borrowing from creditors to pay for its obligations, including Social Security, medical care, and military salaries. When the national debt reaches the relevant level, the department will resort to “some extraordinary measures”, including the suspension of contributions to pension and social funds, to avoid default.

“It is imperative that Congress take timely action to increase or suspend the debt limit. Failure to meet government commitments will irreparably harm the US economy, the livelihoods of all Americans, and global financial stability,” the letter said.