Treasury: New Debt Ceiling Fight Could Derail Economy

by Scott Neuman

October 03, 201311:09 AM

Treasury Secretary Jacob Lew leaves the Capitol after a visit on Thursday.Treasury Secretary Jacob Lew leaves the Capitol after a visit on Thursday.

Alex Wong/Getty Images

The Treasury Department is issuing a warning of dire economic consequences that could rival the Great Recession if Congress is unable to agree on raising the debt ceiling and the nation defaults on its obligations.

Treasury’s report, “The Potential Macroeconomic Effect of Debt Ceiling Brinkmanship,” comes as Congress is still wrangling over a short-term spending bill to reverse the partial government shutdown that went into effect Tuesday.   Later this month, House Republicans and Senate Democrats will need to agree to raise the $16.7 trillion debt ceiling or face a possible default. Continue reading “Treasury: New Debt Ceiling Fight Could Derail Economy”