Treasury Secretary Janet Yellen warned congressional leaders that the federal government could reach its debt limit as early as January 14, 2025, unless Congress intervenes or the Treasury implements “extraordinary measures” to avoid default. Yellen emphasized the need for congressional action to safeguard the U.S. credit, as the debt ceiling was suspended until January 1 under the Fiscal Responsibility Act of 2023. The current debt stands at approximately $36 trillion. While Democrats advocate for raising or abolishing the ceiling, Republicans traditionally oppose it. President-elect Donald Trump also suggested abolishing the debt ceiling, adding complexity to the ongoing negotiations.
