Yellen to meet with Chinese counterpart in Switzerland day before US to hit debt ceiling

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Biden and Yellen claim their economic policies are working

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Treasury Secretary Janet Yellen will be out of the country this week as the U.S. is expected to hit its debt limit on Thursday.

The secretary is set to meet with China's Vice Premier Liu He Wednesday in Switzerland to discuss macroeconomic developments and other economic issues. It will mark the first in-person meeting between the leaders and follows three virtual meetings, according to the Treasury Department.

On Friday, Yellen warned that unless Congress takes swift action, the government could be unable to pay its bills as early as June.

The debt ceiling is the legal limit on the total amount of debt that the federal government can borrow on behalf of the public, including Social Security and Medicare benefits, military salaries and tax refunds.

YELLEN WARNS THAT US WILL HIT DEBT LIMIT NEXT WEEK

On Friday, Treasury Secretary Janet Yellen warned that unless Congress takes swift action, the government could be unable to pay its bills as early as June. (Chung Sung-Jun/Pool via Reuters)

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.

The Biden administration is asking Congress to take action to avoid reaching debt limit. (Anna Moneymaker)

"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."

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"I respectfully urge Congress to act promptly to protect the full faith and credit of the United States," said Yellen. (CBS/Screenshot)

A spokesperson for the Department of the Treasury did not immediately respond to Fox News Digital's request for comment.

Fox News' Megan Henney contributed to this report.