Treasury Secretary , Warns US Is on Track , to Hit Debt Ceiling .
On January 13, Treasury Secretary Janet Yellen told Congress that the United States would hit the nation's debt limit next week.
ABC News reports that the announcement sets up a showdown between Democrats and Republicans who have vowed to couple any increase in the debt ceiling with spending cuts.
According to Yellen, on January 19, the U.S. will hit its $31.4 trillion borrowing limit.
While Treasury is not currently able to provide an estimate of how long extraordinary measures will enable us to continue to pay the government’s obligations, it is unlikely that cash and extraordinary measures will be exhausted before early June, Janet Yellen, U.S. Treasury Secretary, via ABC News.
Yellen reportedly added that the Treasury Department will begin implementing "extraordinary measures" to manage the government's cash flow.
ABC News reports that those measures could include cutting investments in some retirement funds.
Independent analysts reportedly caution that the U.S. is not likely to hit the debt ceiling until late summer or early fall.
In 2011, the U.S. hit the debt ceiling, which ultimately cost the nation its AAA rating
