Thursday, January 23, 2014

Treasury Secy urges Congress to raise debt ceiling as deadline looms

Treasury Secy urges Congress to raise debt ceiling as deadline looms

Hindu Business Line - ‎2 hours ago‎
Treasury Secretary Jacob Lew on Wednesday urged Congress to raise the debt ceiling by February 7, saying such a move would “provide certainty and stability to the economy.
Lew Urges Congress to Raise Debt Ceiling by Late February
Lew warns Congress of late-February debt deadline

Treasury Secy urges Congress to raise debt ceiling as deadline looms

DPA
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US Treasury Secretary noted that in the current scenario the length of time extraordinary measures will be able to extend the nation’s borrowing authority is significantly shorter than it was in 2011 and 2013.
US Treasury Secretary noted that in the current scenario the length of time extraordinary measures will be able to extend the nation’s borrowing authority is significantly shorter than it was in 2011 and 2013.
Washington, Jan 23:  
Treasury Secretary Jacob Lew on Wednesday urged Congress to raise the debt ceiling by February 7, saying such a move would “provide certainty and stability to the economy.” In a letter to Congress, Lew referred to the February 7 deadline that lawmakers set in October when they last confronted the debt ceiling question.
If lawmakers don’t increase the ceiling or suspend it again by then, the Treasury will have to use extraordinary measures to continue selling debt.
Lew noted that in the current scenario the length of time extraordinary measures will be able to extend the nation’s borrowing authority is significantly shorter than it was in 2011 and 2013.
Additionally, the measures will most likely be exhausted in late February and he therefore said Congress “certainly” should raise the debt ceiling before late next month.
Current US national debt stands at about $17.2 trillion. In order for Lew to continue borrowing, Congress must pass a law to raise the debt limit.
Republicans in the House of Representatives have demanded concessions to raise the debt limit in the past. They are expected to decide on their negotiation strategy at a party conference next week. President Barack Obama and Senate Democrats have said they won’t negotiate on the issue.
Financial market reacts nervously when the deadline nears without congressional action.
(This article was published on January 23, 2014)
 
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