20.3 F
Detroit
Saturday, January 22, 2022
More

    Latest Posts

    Policy center says debt limit could be hit in mid-October


    Washington — The government will likely face an unprecedented default on its debt obligations between mid-October and mid-November, a Washington think tank said Friday, seconding a warning earlier this week from the Treasury.

    The “X Date,” the date when Treasury Secretary Janet Yellen will run out of maneuvering room to avoid hitting the debt limit if Congress does not act, will occur a couple of weeks after the start of the new budget year on Oct. 1 and may not be reached until as late as the middle of November, according to the Bipartisan Policy Center.

    “Given the current pace of federal spending and revenues, we are reasonably confident that the X Date won’t arrive before the start of the fiscal year or even the week or so following,” said Shai Akabas, director of economic policy for the center. “But this train could go off the rails shortly thereafter.”

    Yellen sent a letter this week to the leaders of Congress, saying that if the government does not act, the U.S. will be unable to avert a default in October.

    Yellen has been employing what are deemed in law “extraordinary measures” to keep the government functioning and from hitting the debt limit, which went back to effect on Aug. 1 after being suspended for two years.

    Latest Posts

    spot_imgspot_img

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.