Debt Limit Deadline
The White House might be forced to deal with the debt limit before the August recess. Treasury Secretary Yellen said that the federal government could run out of borrowing room as early as this summer, contradicting some analysts who have said Treasury's large cash balance could provide a cushion well into the fall. In 2019 Congress suspended the debt ceiling through July 31, 2021. At that point, Treasury can employ so-called extraordinary measures to delay bumping up against the debt limit. Those actions, such as delaying the investment of federal employee retirement funds, often can provide a few extra months of wiggle room. However Yellen stated that given the massive government response to the pandemic and uncertain economic outlook, it was possible those typical measures may not last much beyond the July 31st expiration date.