US to hit debt ceiling in mid-October: Treasury
WASHINGTON (AFP) - The US will hit its statutory debt ceiling in mid-October, raising the chance that the government will be forced to default on its debts, Treasury Secretary Jacob Lew said on Monday.
In a letter to Congress, Lew urged legislators to raise the limit from the current US$16.7 trillion (S$21.4 trillion), saying to not do so "would cause irreparable harm to the American economy."
The Treasury has been operating under the ceiling since it reached that level on May 17, helped by "extraordinary measures" to manage expenditures, and a surge in tax receipts above forecasts.
However, Mr Lew said, the latest estimates point to that breathing room being exhausted around the middle of October.