Tag: United States Secretary of the Treasury

Budget Office: Next Debt Ceiling D-Day Could Come in March

Budget Office: Next Debt Ceiling D-Day Could Come in March

Steve Heap/Shutterstock.com

The government will exhaust its emergency borrowing authority sometime between March and June 2014, if Congress does not suspend or increase the nation’s debt limit again, according to a new report.

The nonpartisan Congressional Budget Office estimated that Treasury’s wiggle room to avoid breaching the debt ceiling could run out as early as March because the government typically runs a large deficit during that month and in February due to tax refunds. Still, April brings in significant tax revenue for the government so that could buy it more time on the debt ceiling, CBO reasoned. “Given the volume of the government’s daily cash flows and the uncertainty about the magnitude of key transactions during those months, the Treasury could exhaust its extraordinary measures and authority to borrow as early as March or as late as May or June,” the report said.

Continue reading “Budget Office: Next Debt Ceiling D-Day Could Come in March”

U.S. Budget Deficit Falls Under $1 Trillion; Lowest Since 2008

by Bill Chappell

October 30, 2013 6:52 PM

The U.S. government ran a deficit of $680 billion in the financial year that ended last month — the first time since 2008 that the annual shortfall has been under $1 trillion. It represents a fall from $1.09 trillion in 2012, but as the AP reports, “It’s still the fifth-largest deficit of all time.”

The Treasury Department announced the news along with the White House budget office Wednesday.

“Under President Obama, the nation’s deficit has fallen for the past four years,” Treasury Secretary Lew said. “It is now less than half of what it was when the president took office.” Continue reading “U.S. Budget Deficit Falls Under $1 Trillion; Lowest Since 2008”

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”

Treasury: Debt Limit D-Day is Oct. 17

Treasury: Debt Limit D-Day is Oct. 17

Treasury Secretary Jacob Lew informed lawmakers of the new date.
Treasury Secretary Jacob Lew informed lawmakers of the new date. Evan Vucci/AP

Uncle Sam will exhaust its emergency borrowing authority by Oct. 17 and won’t have enough money to pay all its bills if Congress does not increase the debt limit, Treasury Secretary Jacob Lew said on Wednesday.

Without an increase in the $16.7 trillion debt limit and no more emergency borrowing authority to draw from, the government could default for the first time in history. That would put federal civilian and military salaries at risk, and could result in pay delays governmentwide.

Lew said that no later than Oct. 17, Treasury will have exhausted its emergency borrowing authority or “extraordinary measures,” which it tapped in May when the government hit the debt ceiling. The emergency borrowing authority has allowed the government to stay afloat through the summer. Continue reading “Treasury: Debt Limit D-Day is Oct. 17”

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