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Mnuchin asks Congress to raise debt ceiling 'as soon as possible'

Mnuchin asks Congress to raise debt ceiling 'as soon as possible'
© Greg Nash

Treasury Secretary Steven MnuchinSteven MnuchinTreasury imposes additional sanctions on Cuba over allegations of 'serious human rights abuse' Treasury Department sanctions inner circle of Russian agent Derkach for election interference Sanders defends push to impeach Trump: Insurrection won't be tolerated MORE on Monday urged congressional leaders to raise the federal debt limit “as soon as possible” as the department begins accounting maneuvers to prevent a default.

Mnuchin wrote in a March 4 letter to top lawmakers that the Treasury Department had begun a “debt issuance suspension period” to avoid missing a debt payment, and asked for swift action to raise the cap on federal debt.

“I respectfully urge Congress to protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible,” Mnuchin wrote to Speaker Nancy PelosiNancy PelosiThe Memo: Trump leaves changed nation in his wake New York court worker arrested, accused of threats related to inauguration GOP Rep Marjorie Taylor Greene referred to Parkland school shooting as 'false flag' event on Facebook MORE (D-Calif.) and seven other congressional leaders.

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The recipients include House Minority Leader Kevin McCarthyKevin McCarthyHere's how presidents move into the White House in just hours on Inauguration Day Three more major companies suspend PAC donations after Capitol riots Pence, other GOP officials expected to skip Trump send-off MORE (R-Calif.), Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellTrump has talked to associates about forming new political party: report McConnell, Schumer fail to cut power-sharing deal amid filibuster snag McConnell keeps GOP guessing on Trump impeachment MORE (R-Ky.), Senate Minority Leader Charles SchumerChuck SchumerNew York court worker arrested, accused of threats related to inauguration Schumer: Trump should not be eligible to run for office again McConnnell, McCarthy accept Biden invitation to pre-inauguration church service MORE (D-N.Y.), and the chairmen and ranking members of the Senate Finance Committee and House Ways and Means Committee.

The legal limit on how much the federal government can owe creditors, known as the “debt ceiling,” was reimposed Saturday after a one-year suspension ran out on March 2. The Treasury Department has begun a series of financial and accounting moves called “extraordinary measures” to prevent the U.S. from breaching the debt ceiling.

Those maneuvers should give lawmakers and President TrumpDonald TrumpLil Wayne gets 11th hour Trump pardon Trump grants clemency to more than 100 people, including Bannon Trump expected to pardon Bannon: reports MORE until September to reach a deal, according to recent estimates, though the exact deadline is uncertain.

Members of both parties are eager to prevent the U.S. from defaulting on its debt, which could trigger a global economic meltdown. Even so, it's unclear how party leaders plan to raise the debt ceiling and whether it will be entangled in testy government funding negotiations.

Mnuchin wrote in the Monday letter that Treasury had halted investments in certain benefits funds for federal workers and retirees to avoid exceeding the debt limit. The secretary said federal employees and retirees who receive benefits from those funds should be unaffected.