Treasury secretary: US to reach debt ceiling on Thursday

Janet Yellen told Congress that extraordinary measures' would be taken to avoid default until legislation is passed to raise ceiling

Janet Yellen, the US treasury secretary, has notified Congress that the US is projected to reach its debt limit on Thursday, 19 January, and will then resort to extraordinary measures" to avoid default.

In a letter to House and Senate leaders on Friday, Yellen said her actions will buy time until Congress can pass legislation that will either raise the nation's $31.4tn borrowing authority or suspend it again for a period of time.