Yellen warns that US will hit debt limit next week

Treasury Secretary Janet Yellen on Friday warned the U.S. will hit its debt limit on Jan. 19 and that unless Congress takes swift action, the government could be unable to pay its bills as early as June. 

In a letter addressed to the big four congressional leaders, Yellen said the Treasury Department will begin deploying so-called extraordinary measures to prevent the U.S. from defaulting on its obligation.  

The emergency moves should give Congress until at least early June to raise or suspend the country's current $31.4 trillion borrowing limit, she added.

"Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability," Yellen said. "I respectfully urge Congress to act promptly to protect the full faith and credit of the United States."