Connect with us

Hi, what are you looking for?

Politics

Paulson, Rubin, Geithner, Summers Urge Congress to Raise Debt Ceiling

Politics1 hour ago (Sep 22, 2021 01:00PM ET)

(C) Bloomberg. The U.S. Treasury Department building in Washington, D.C., U.S., on Saturday, June 26, 2021. The Federal Reserve might consider an interest-rate hike from near zero as soon as late 2022 as the labor market reaches full employment and inflation is at the central bank’s goal.

(Bloomberg) — Six former Treasury secretaries appealed to congressional leaders to raise the statutory limit on U.S. debt in order to avoid a debilitating default on the U.S. government’s financial obligations.

“Even a short-lived default could threaten economic growth,” the bipartisan group, which included Robert Rubin, Henry Paulson and Lawrence Summers, wrote in a letter dated Wednesday to Democratic and Republican leaders on Capitol Hill. “It creates the risk of roiling markets and of sapping economic confidence.”

Democrats this week are pursuing an almost certainly doomed attempt to pass a bill that would fund the government through the end of the year and suspend the debt ceiling for a year. Republicans have pledged to block the legislation in the Senate.

The limit kicked in at $28.4 trillion at the beginning of August following a two-year suspension, forcing the Treasury to employ so-called extraordinary measures to avert breaching the ceiling. Treasury Secretary Janet Yellen has said the department will run out of money some time in October.

The letter from former Treasury secretaries also backed the Treasury’s assertion that it could not prioritize payments in the event of a default to make sure investors in Treasury securities were protected.

“There is no viable way to manage payments across the federal government to prevent a default if there are insufficient resources available absent action on the debt limit,” they wrote.

The authors also included Timothy Geithner, Jacob Lew and W. Michael Blumenthal.

Former Treasury Secretary Steven Mnuchin, who served under President Donald Trump, wasn’t a signatory to the letter.

(C)2021 Bloomberg L.P.

Paulson, Rubin, Geithner, Summers Urge Congress to Raise Debt Ceiling

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved