Tags: Lew | Debt | Limit | Treasury

Lew Warns Congress of Late-February Debt Deadline

Wednesday, 22 Jan 2014 05:46 PM

 

Treasury Secretary Jacob Lew has told Congress that by late February he will run out of steps he can take to avoid a first-ever default on U.S. debt.

In a letter to congressional leaders Wednesday, Lew said he thinks he will exhaust the bookkeeping maneuvers he can make to avoid breaching the federal borrowing limit sooner than previously thought. He had estimated in December that he could avoid a default until late February or early March.

Under an agreement that ended the partial government shutdown in October, Congress suspended the debt limit until Feb. 7. After that, Lew would start using the bookkeeping maneuvers.

He urged Congress to raise the limit before Feb. 7.

Lew said the bookkeeping maneuvers won't last as long as they did in previous debt-ceiling battles because of the time of year the limit will be reached. In February, the government sends out large amounts of money because of tax refunds it owes taxpayers.

He said the maneuvers would probably clear only $200 billion of borrowing room, less than the $330 billion that the bookkeeping steps freed up in 2013, for example.

"The significantly smaller amount of headroom that can be freed up now will quickly be exhausted by the large obligations of the government that occur in the month of February," Lew wrote.

Some Republicans hope to use the debt limit as leverage to force the Obama administration to agree to more government spending cuts. President Barack Obama has said he will not negotiate over the debt limit.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Ben Carson: Obama Letting Islamics 'Destroy Us'

Sunday, 01 Feb 2015 16:26 PM

Dr. Ben Carson, an expected GOP presidential contender, said he wants to see the size of government reduced if he one da . . .

Justice Department Probes Moody's for Mortgage Deal Grades: WSJ

Sunday, 01 Feb 2015 17:32 PM

The U.S. Department of Justice is investigating Moody's Investors Services for issuing favorable grades on mortgage deal . . .

Santorum: Blue-Collar Jobs a Top Issue

Sunday, 01 Feb 2015 16:41 PM

Former Sen. Rick Santorum, a possible GOP presidential contender in 2016, said Sunday that blue-collar jobs are one of t . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved