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 Terner MnuchinBolton exit provokes questions about Trump shift on Iran Trump called out for 'my favorite dictator' while awaiting Egyptian leader at summit: report Romney opposes Trump taking executive action to reduce capital gains taxes 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 PelosiProgressives call for impeachment inquiry after reported Kavanaugh allegations The promise and peril of offshoring prescription drug pricing Words matter, except to Democrats, when it involves impeaching Trump MORE (D-Calif.) and seven other congressional leaders.

ADVERTISEMENT

The recipients include House Minority Leader Kevin McCarthyKevin Owen McCarthyPence extends olive branch to Cummings after Trump's Baltimore attacks Marijuana industry donations to lawmakers surge in 2019: analysis McCarthy: Trump traveling to Baltimore shows he cares about the city MORE (R-Calif.), Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellO'Rourke responds to Buttigieg's gun criticism: 'That calculation and fear is what got us here in the first place' Cicilline on Trump investigations versus legislation: 'We have to do both' The 13 Republicans needed to pass gun-control legislation MORE (R-Ky.), Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerSinema says she would back Kennedy in race against Markey Democrats threaten to withhold defense votes over wall Pelosi: 'People are dying' because McConnell won't bring up gun legislation 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 John TrumpHarris bashes Kavanaugh's 'sham' nomination process, calls for his impeachment after sexual misconduct allegation Celebrating 'Hispanic Heritage Month' in the Age of Trump Let's not play Charlie Brown to Iran's Lucy 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.