Treasury Expected to Run Out of Cash in Early November Unless Debt Limit Is Raised
14 Outubro 2015 - 5:00PM
Dow Jones News
WASHINGTON—The U.S. Treasury will run out of cash in the first
half of November if the federal borrowing limit isn't raised, the
Congressional Budget Office said Wednesday in an updated
estimate.
The nonpartisan budget office moved up its forecast of how long
the U.S. could pay its bills without an increase in the debt limit
by several weeks due to a larger-than-expected budget deficit in
September. Previously, the CBO said the Treasury would run out of
cash between the middle of November and early December.
The latest CBO forecast largely mirrors the latest guidance from
Treasury Secretary Jacob Lew. The Treasury has used so-called
extraordinary measures since mid-March to remain below the federal
borrowing limit, which is at $18.1 trillion.
Mr. Lew said it would no longer be able to use those emergency
measures around Nov. 5, after which the government would fund
operations with daily cash flow.
The CBO said Wednesday that if the debt limit isn't increased,
the Treasury would run a very low cash balance in early November,
and it would be depleted shortly after that. Failing to raise the
debt limit would lead to delays in payments of government
activities, a default on the government's debt obligations, or
both, the CBO said.
Analysts at the Bipartisan Policy Center, a Washington think
tank, have estimated the Treasury would run out of money between
Nov. 10 and 19.
The debt limit has prompted increasingly bitter partisan fights
in recent years that have gone down to the wire. Republicans have
viewed the measure as one way to gain leverage and push for
government spending cuts, but the White House says it won't
negotiate on debt-limit increases.
Many lawmakers expect House Speaker John Boehner (R., Ohio) to
find a way to approve a debt-limit fix before he retires from
Congress. That departure could happen as soon as Oct. 30 but is
contingent on Republicans selecting a new speaker first.
The White House is also in talks with Mr. Boehner and Senate
Majority Leader Mitch McConnell (R., Ky.) over an agreement on
spending levels for 2016 and possibly 2017. If they can come up
with a way to raise spending caps set in law with offsetting cuts
in entitlement spending, that could provide a vehicle for raising
the debt limit and dispatching with two difficult political votes
in one swoop.
Some Republicans have suggested Mr. Lew's notice that the debt
ceiling would be hit by early November may have been politically
motivated and designed to force resolution before Mr. Boehner
leaves Washington. Both reports from the CBO and the BPC have shown
no support for such claims.
Write to Nick Timiraos at nick.timiraos@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 14, 2015 15:45 ET (19:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Treasury Group Ltd (ASX:TRG)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Treasury Group Ltd (ASX:TRG)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024