Friday, March 10, 2017

Treasury calls on Congress to raise debt limit, begins steps to delay default

WAPO by

Treasury Secretary Steven Mnuchin on Thursday began taking “extraordinary measures” to delay the U.S. government from defaulting on its obligations, as he called on House Speaker Paul D. Ryan (R-Wis.) to lift the debt ceiling “at its first opportunity.”

Mnuchin, in a letter to Ryan, said Treasury was now suspending the sale of certain state and local securities, a practice the federal government normally performs to assist with tax policies. Treasury will soon likely suspend payments to certain pension funds as it tries to delay, as long as possible, falling behind on other payments. Eventually, though, it will run out of options and not have enough money to pay its bills.

“As I said in my confirmation hearing, honoring the full faith and credit of our outstanding debt is a critical commitment,” Mnuchin wrote to Ryan.

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