Wednesday, May 5, 2021

Treasury Warns On Shaky Tools It Uses to Keep the National Debt From Breaching Limit

The Treasury is warning that its tools to keep the national debt from breaching the limit may not last as long as usual, reports Saleha Mohsin of Bloomberg.

Covid is making it hard to predict how long the extra-ordinary measures may last and the Treasury is "evaluating a range of potential scenarios."


Moshin adds: The Obama Treasury had written a secret plan to prioritize debt payments as a contingency, which ex-Treasury Sec Jack Lew called "default by another name."


Via WSJ:

The Treasury said it expects Congress will vote to raise or suspend the borrowing limit before the current suspension expires on Aug. 1. If it doesn’t, the Treasury will take steps as it has in the past to continue to temporarily finance government operations.