Treasury to Take Special Measures to Hold Off Debt Limit Crisis

Discussion in 'Wall St. News' started by S2007S, May 2, 2011.

  1. S2007S


    Just out a few moments ago, should be interesting to see what "SPECIAL" measures they will make to hold off debt limit crisis!

    Treasury to Take Special Measures to Hold Off Debt Limit Crisis (Story Developing)
  2. S2007S


    US to Take Steps to Stay Below Debt Ceiling
    Reuters | May 02, 2011 | 03:21 PM EDT

    The U.S. will start taking “extraordinary” steps to extend the federal government’s authority to borrow funds as it nears the debt ceiling, said Treasury Secretary Timothy Geithner in letters to House and Senate leaders.

    Geithner told lawmakers last month that the U.S. would hit the debt ceiling by May 16 and could default as soon as July 8.

    "Because it appears that Congress will not act by May 16, it will be necessary for the Treasury to begin implementing these extraordinary measures this week," said Geithner.

    Stocks pared earlier gains following the news, with all three major indices trading slightly lower.

    Meanwhile, the Treasury slashed its borrowing estimates for the April-June quarter by more than half to $142 billion as tax receipts rose and a battle over raising the debt ceiling looms.

    The Treasury said the borrowing estimate is $156 billion lower than estimates made in January and attributed the decrease to higher receipts and lower outlays, which allowed it to start the quarter with a higher-than-expected cash balance.