Thursday, September 3rd18.6°C
26775
26096

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

26480


Recent Trending




Today's Market
S&P TSX13596.41+51.16
S&P CDNX553.75+3.70
DJIA16374.76+23.38
Nasdaq4733.50-16.48
S&P 5001951.13+2.27
CDN Dollar0.7583+0.0004
Gold1124.00-8.50
Oil46.64-0.11
Lumber233.30-0.70
Natural Gas2.712-0.013

 
Okanagan Companies
Pacific Safety0.22+0.00
Knighthawk0.010.00
QHR Technologies Inc1.24+0.05
Cantex0.04-0.01
Anavex Life Sciences1.11-0.14
Metalex Ventures0.05-0.00
Russel Metals21.09+0.22
Copper Mountain Mining0.60-0.01
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.50-0.12

 



26873

FEATURED Property
213979510841 Westshore Road
4 bedrooms 3 baths
$349,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...

_








Member of BC Press Council


26707