U.S. Debt Ceiling limit kicks in on Jan. 1st 2025 as Janet Yellen simultaneously is draining the U.S. Treasury Cash account.

With Janet Yellen currently depleting the U.S. Treasury’s cash reserves, and the debt ceiling set to take effect on January 1, 2025, the U.S. government will likely need to implement “extraordinary measures” by mid to late January to prevent a default. This scenario coincides with Trump’s inauguration.

It seems Yellen might be positioning the incoming administration with minimal leverage for negotiations by draining any potential financial reserves.

Historically, the debt ceiling has often been more of a political spectacle than a crisis, but this situation could become significantly complicated.