The rise of the debt ceiling is still being negotiated.
The Congressional Budget Office has projected that the Treasury Department will run out of ways to prevent a government default this summer.
The debt ceiling has already been reached last month, and Treasury Secretary Yellen said the department has begun taking “extraordinary measures” to prevent a default. Those measures essentially mean shifting money around differing government accounts in order to pay incoming bills without issuing new debt.
“The projected exhaustion date is uncertain because the timing and amount of revenue collections and outlays over the intervening months could differ from our projections. In particular, income tax receipts in April could be more or less than we estimate,” the CBO noted.
Most economists are asking Congress to raise the debt ceiling, as a default could be a blow to the nation’s economy.
As the Lord Leads, Pray with Us…
- For Secretary Yellen as she oversees measures to cover the nation’s obligations.
- For CBO officials as they calculate the costs, revenue, and length of time the current situation is sustainable.
- For wisdom for members of Congress as they consider raising the nation’s debt ceiling.
Sources: Washington Examiner, The Hill, CNN
