Friday, September 19th16.2°C
19716
20950

Lew warns Congress he will run out of manoeuvring room on US debt ceiling by late February

WASHINGTON - 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 manoeuvrs 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 manoeuvrs.

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

Lew said the bookkeeping manoeuvrs 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 manoeuvrs 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.

The Canadian Press


Read more Business News

22689


Recent Trending




Today's Market
S&P TSX15265.35-200.19
S&P CDNX955.06-10.73
DJIA17279.7413.75
Nasdaq4579.789-13.637
S&P 5002010.40-0.96
CDN Dollar0.9126+0.0004
Gold1216.90-10.00
Oil92.45-0.62
Lumber329.00-0.90
Natural Gas3.911-0.064

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.37+0.05
Cantex0.05-0.01
Anavex Life Sciences0.223-0.0031
Metalex Ventures0.060.00
Russel Metals35.75-1.26
Copper Mountain Mining2.66-0.02
Colorado Resources0.165-0.01
ReliaBrand Inc0.0249+0.0009
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



23480

FEATURED Property
2072536#5-80 Kettle View Road
4 bedrooms 5 baths
$828,800
more details
image2image2image2
Click here to feature your property
Please wait... loading


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...

_



23109




Member of BC Press Council


23262