The countdown toward a possible U.S. government default is in the offing. us debt kprc2 click2houston
The Treasury Department is seen near sunset in Washington, Wednesday, Jan. 18, 2023. The Treasury Department projects that the federal government on Thursday will reach its legal borrowing capacity, an artificially imposed cap that lawmakers have increased roughly 80 times since the 1960s. Markets so far remain calm, as the government can temporarily rely on accounting tweaks to stay open. – The U.S.
Markets so far remain relatively calm, given that the government can temporarily rely on accounting tweaks to stay open and any threats to the economy would be several months away. Even many worried analysts assume there will be a deal. Asked twice on Wednesday if there was evidence that House Republicans can ensure the government will avert a default, White House press secretary Karine Jean-Pierre said it's their “constitutional responsibility.” She did not say whether the White House saw signs at this stage that a default was out of the question.McCarthy said Biden needs to recognize the political realities that come with a divided government.
“America must never default on its debt," McConnell said."We’ll end up in some kind of negotiation with the administration over what are the circumstances or conditions under which the debts are going to be raised.” In order to keep the government open, the Treasury Department on Thursday was making a series of accounting maneuvers that would put a hold on contributions and investment redemptions for government workers' retirement and health care funds, giving the government enough financial space to handle its day-to-day expenses until roughly June.
The underlying challenge is that the government would have to balance its books on a daily basis if it lacks the ability to issue debt. If the government cannot issue debt, it would have to impose cuts equal in size on an annual basis to 5% of the total U.S. economy. Analysts say their baseline case is that the U.S. avoids default.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US Treasury buys time for Biden and GOP on debt limit dealThe countdown toward a possible U.S. government default began Thursday with Treasury implementing accounting measures to buy time as frictions between President Joe Biden and House Republicans raise alarms about whether the United States can sidestep a potential economic crisis. The Treasury Department said in a letter to congressional leaders it has started taking “extraordinary measures” as the government has run up against its legal borrowing capacity of $31.381 trillion. An artificially imposed cap, the debt ceiling has been increased roughly 80 times since the 1960s.
Read more »
Treasury Department buys time for President Biden and GOP on debt limit dealThe countdown toward a possible U.S. government default is in the offing — with frictions between President Joe Biden and House Republicans raising alarms about whether the U.S. can sidestep a potential economic crisis.
Read more »
US Treasury buys time for Biden and GOP on debt limit dealThe Treasury Department says it has started taking “extraordinary measures” as the government has run up against its legal borrowing capacity of $31.381 trillion
Read more »
US Treasury buys time for Biden and GOP on debt limit dealThe Treasury Department says it has started taking “extraordinary measures” as the government has brushed up against its borrowing capacity of $31.381 trillion. Political frictions are raising alarms about avoiding a potential economic crisis.
Read more »
US Treasury buys time for Biden and GOP on debt limit dealThe Treasury Department said in a letter to congressional leaders it has started taking “extraordinary measures” as the government has brushed up against its legal borrowing capacity of $38.381 trillion
Read more »
US Treasury buys time for Biden and GOP on debt limit dealThe government can temporarily rely on accounting tweaks to stay open, meaning that any threats to the economy are several months away.
Read more »