Treasury Taps Retirement Funds to Avoid Breaching US Debt Limit

  • US Treasury faces running out of cash later this year
  • Republicans, Democrats clash over conditions for raising limit
Bill Dudley Says US Default Would Be 'Huge Blow' to Markets
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The Treasury Department is beginning the use of special measures to avoid a US payments default, after the federal debt limit was reached Thursday.

The department is altering investments in two government-run funds for retirees, in a move that will give the Treasury scope to keep making federal payments while it’s unable to boost the overall level of debt.