US Treasury Secretary Janet Yellen has penned a new letter to Kevin McCarthy, the Speaker of the US House of Representatives, regarding the debt limit.
Yellen stated that the Treasury Department wrote to her to inform McCarthy of the debt limit processes, and that due to the debt limit, the Savings Fund, a part of the Federal Employee Pension System with its prestige, could not be fully invested in the State Securities Investment Fund.
Yellen noted that the regulation regulating investments for the fund in question gave the Treasury Minister the authority to suspend investment in the fund in order not to exceed the legal debt limit, and stated that his predecessors also took the same action under exemplary conditions.
Emphasizing that the fund will be completed if the debt limit is increased or suspended according to the law, Yellen noted that federal retirees and employees will not be affected by this move.
“I call for immediate action”
“I urge Congress to take immediate action to preserve the full faith and prestige of the United States,” Yellen said.
US Treasury Secretary Yellen, in her first letter to McCarthy on January 13, reported that the country was assumed to reach its debt limit on January 19, and urged Congress to “take immediate action” to increase or suspend the debt limit.
In the second letter she sent on January 19, Yellen announced that the federal government had begun to implement “extraordinary” measures to prevent the country from defaulting after reaching the $31.4 trillion debt limit.
In this context, new investments in the Public Service Retirement and Disabled Persons Fund and the Postal Service Retired Health Benefits Fund were suspended until June 5 by the US Treasury Department.