The latest estimate from Treasury
Secretary Jack Lew on when the government will run out of borrowing power is
now set at the end of February. Lew called on Congress to raise the debt
ceiling soon in order to stave off another government shutdown.
The U.S. debt ceiling was
suspended until February 7th, and unless Congress extends the
suspension or authorizes an increase in borrowing limits, the Treasury
Department will have to deploy special accounting maneuvers in order to pay the
country’s bills on time.
Previously, these “extraordinary
measures” were estimated to provide relief through the end of February and
early March. But in an interview Tuesday at the Council on Foreign Relations,
Secretary Lew said he now believes the Treasury will no longer be able to pay
bills by the end of February.
Continued drama and last-minute
deal making in Congress has the potential to impact the U.S economy and slow
recent growth. Lew said that confidence could be undermined at a critical juncture
of the economic rebound. Lew stated that a last-minute deal causes undue
anxiety among investors.
"Why would anyone want to
hurt the U.S. economy and hurt the recipients of payments they're entitled
to?" Lew said. "Everyone knows these obligations are not made when
you raise the borrowing authority. The obligations are made when you vote on appropriations
bills and when you vote on tax bills."
Congress may not finalize its strategy until the
end of January, and with mid-term elections looming analysts feel there is
little eagerness to instigate a new fight over the borrowing power when
Obamacare is still providing ample ammunition.