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 MnuchinOn The Money: Trump appeals to Supreme Court to keep tax returns from NY prosecutors | Pelosi says deal on new NAFTA 'imminent' | Mnuchin downplays shutdown threat | Trump hits Fed after Walmart boasts strong earnings Lawmakers aim for agreement on top-line spending by next week Mnuchin: White House has no intention for a shutdown 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 PelosiTrump knocks testimony from 'Never Trumpers' at Louisiana rally Jordan calls Pelosi accusing Trump of bribery 'ridiculous' USMCA deal close, but not 'imminent,' Democrats say MORE (D-Calif.) and seven other congressional leaders.

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The recipients include House Minority Leader Kevin McCarthyKevin Owen McCarthyMcCarthy says views on impeachment won't change even if Taylor's testimony is confirmed House Republicans call impeachment hearing 'boring,' dismiss Taylor testimony as hearsay The Hill's Morning Report - Diplomats kick off public evidence about Trump, Ukraine MORE (R-Calif.), Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellKavanaugh hailed by conservative gathering in first public speech since confirmation Overnight Defense: Erdoğan gets earful from GOP senators | Amazon to challenge Pentagon cloud contract decision in court | Lawmakers under pressure to pass benefits fix for military families On The Money: Trump appeals to Supreme Court to keep tax returns from NY prosecutors | Pelosi says deal on new NAFTA 'imminent' | Mnuchin downplays shutdown threat | Trump hits Fed after Walmart boasts strong earnings MORE (R-Ky.), Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerOvernight Health Care: Trump officials making changes to drug pricing proposal | House panel advances flavored e-cig ban | Senators press FDA tobacco chief on vaping ban Chad Wolf becomes acting DHS secretary Schumer blocks drug pricing measure during Senate fight, seeking larger action 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 TrumpButtigieg surges ahead of Iowa caucuses Biden leads among Latino Democrats in Texas, California Kavanaugh hailed by conservative gathering in first public speech since confirmation 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.