Mnuchin warns Congress that US nears debt ceiling

Friday, 12. July 2019 17:44

"There is a scenario" for cash to run out for the government of the United States "in early September," Secretary of the Treasury Steve Mnuchin told House Speaker Nancy Pelosi on Friday. He urged her and other Congress leaders in a letter to raise the debt limit before the session is adjourned on July 26 and recess starts on August 5.

According to the schedule, lawmakers are due to return to Capitol Hill on September 6. "Since there is a reasonable uncertainty in projecting government cash flows, it is impossible to identify precisely how long extraordinary measures will last. We model various scenarios for our cash projections," the Treasury secretary stated.

A compromise between the administration and the opposition Democratic Party allowed the introduction of "extraordinary measures" on March 2, reinstating the ceiling. Pelosi earlier expressed the intention to overcome the issue before the break. The Department of the Treasury has raised it in May.

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