WH Budget chief says ‘we will deal’ with debt ceiling

WH Budget chief says ‘we will deal’ with debt ceiling
© Greg Nash

Office of Management and Budget Director Mick Mulvaney told Fox News Monday that he expects Treasury Secretary Steve Mnuchin to use extraordinary measures when the current debt ceiling extension expires on March 15.

"The secretary of the Treasury actually makes the decision, and I expect him to do what all previous secretaries of the Treasury have done, at least all the ones that I'm familiar with, to use those measures to extend that date," Mulvaney said in an interview on Fox News, as reported by Reuters.

"But we will deal with it," he said, and "certainly" before Congress recesses in August.

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Mnuchin told senators at his confirmation hearing last month that he would like to see an increase in the debt ceiling "sooner rather than later."

Congress must approve periodic increases in the legal limit on how much money the federal government can borrow. In 2015, Congress suspended the ceiling until March 15, allowing normal borrowing to continue.

Analysts estimate the Treasury can continue to borrow and avoid a payment default for several months past March 15, even with no action from Congress, if it deploys so-called extraordinary cash management measures, Reuters reported.