Janet Yellen Drops Debt Bombshell On Trump’s First Day In Office

In a stunning development, outgoing Treasury Secretary Janet Yellen announced that the United States will hit its debt ceiling on January 21, just one day after President-elect Donald Trump assumes office. The announcement leaves the incoming administration facing a massive fiscal challenge from day one.

Yellen notified House Speaker Mike Johnson (R-LA) and other congressional leaders in a formal letter that the Treasury will begin “extraordinary measures” to prevent the U.S. government from defaulting on its financial obligations. These steps include halting investments in key federal retirement and healthcare funds.

“The debt limit does not authorize new spending, but it creates a risk that the federal government might not be able to finance its existing legal obligations,” Yellen stated, calling for immediate congressional action.

The timing of Yellen’s announcement has sparked outrage among critics, who accuse the Biden administration of deliberately leaving the Trump administration with an economic crisis. Social media erupted with accusations that the move was a political stunt.

The national debt, now over $36 trillion, has ballooned due to years of unchecked government spending. Soaring inflation and higher interest rates have made the situation even more precarious, increasing the cost of borrowing.

Trump has previously advocated for abolishing the debt ceiling, arguing that it serves no useful purpose. His Treasury Secretary nominee, Scott Bessent, expressed support for working with Trump to eliminate the debt cap if confirmed.

Congressional Republicans are split on how to proceed. The Freedom Caucus has proposed raising the debt ceiling while pushing for aggressive spending cuts. Trump, however, is reportedly leaning toward a single, decisive solution.

This sudden financial crisis is the first major test for Trump’s second term, challenging the new administration to take swift and effective action.