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Treasury Starts Additional Steps to Avoid Debt-Limit Breach (1)

Aug. 2, 2021, 9:00 PM

The Treasury Department began using additional special measures to avoid U.S. default, after the debt limit was reinstated Sunday following a two-year suspension.

The department is pausing new investments in several federal employee retirement and benefit funds, Treasury Secretary Janet Yellen said Monday in a letter to Congress. Previous secretaries have taken similar action during prior episodes over the limit, Yellen wrote.

Unless Congress raises or suspends the debt ceiling again, the U.S. may be headed toward default as early as October. Treasury used its first special measure on Friday to avoid breaching the limit by halting the sale of ...