US can only pay its bills until March, Treasury Secretary Jack Lew warns
Unprecedented US debt default could rock the country if Washington does not raise the borrowing cap soon
TelegraphUK
19 Dec 2013
The Obama administration has warned Congress that the government could run out of borrowing authority needed to help pay its bills as soon as February if lawmakers do not swiftly raise the federal debt ceiling.
“I respectfully urge Congress to take action to raise the debt limit at the earliest possible moment,” Treasury Secretary Jack Lew said in a letter to congressional leaders.
Congress passed a two-year budget deal on Wednesday to trim some spending cuts planned for next year, and the pact reduces the risk of a government shutdown.
But the legislation does nothing to avoid a potential unprecedented US debt default that could occur if Washington does not raise the borrowing cap soon.
In October, Congress and the administration suspended a $16.7 trillion cap on borrowing until February 7. If the debt ceiling isn’t raised by then, Treasury will be able to juggle money between government accounts for a few weeks to keep just under the new limit.
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