The US Treasury halts government pension investments due to the debt crisis

The US Treasury halts government pension investments due to the debt crisis
The US Treasury halts government pension investments due to the debt crisis
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The US Treasury has halted new investment in a federal government pension program, the latest in a series of actions it has taken to prevent defaults after the government reached its borrowing limit, Treasury Secretary Janet Yellen told congressional leaders.

According to CNBC, the Treasury Department is taking so-called extraordinary measures to continue paying its bills after it exceeded its $31.4 trillion borrowing limit last Thursday, and Yellen said she expects the measures to prevent defaults until at least June 5.

The action is the third by the Treasury to ensure that a government, which is subject to borrowing restrictions amid negotiations of the US debt crisis, still has enough money to pay its bills. Mail through June 5th.

Meanwhile, lawmakers in Congress are trying to strike a deal to raise the US borrowing limit and prevent defaults for the first time ever and some House Republicans have pushed to link spending cuts to an increase in the borrowing limit.

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“Republicans have resorted to brinkmanship and hostage-taking as they demand aggressive spending cuts,” Senate Majority Leader Chuck Schumer, D-NY, said Tuesday.

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Yellen said the ministry could no longer fully invest in the government’s securities investment fund, or so-called “fund Guntil the debt ceiling is raised or suspended, which is part of the Provident Provident Fund under the Federal Employees Retirement System.

In a letter to House Speaker Kevin McCarthy, Yellen wrote: “The law governing fund investments G The Secretary of the Treasury expressly authorizes the suspension of his investment to avoid violating the statutory debt limit… My predecessors took this suspension action in similar circumstances.”

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