Treasury Dept. Taking 'Extraordinary Measure' As Nation Reaches Debt Limit

The coming political showdown over raising the federal debt ceiling took on added significance Thursday, as the Treasury Department alerted congressional leaders that it has reached its legal borrowing capacity and is now taking “extraordinary measures” to avoid going into default.

Treasury Secretary Janet Yellen indicated last week that these measures — accounting practices to move money around — should give Congress another approximately six months to reach an agreement, but friction between President Biden and House Republicans is raising concerns that the two sides may be too far apart to find a compromise and sidestep what would become a major economic crisis.