US to hit debt limit around early November: CBO
WASHINGTON (AFP) - The United States will hit its legal borrowing limit and run out of cash around the first two weeks of November, the independent Congressional Budget Office said on Tuesday.
With Congressional Republicans and the White House girding for yet another battle over borrowing to finance the deficit, CBO director Douglas Elmendorf said the government could be forced into sudden cuts or defaulting on its debt as early as six weeks from now.
Based on expected cash flows, he told reporters, "We think that the Treasury will probably run out of cash sometime between the end of October and mid-November, without some changes in the borrowing limit." A political stalemate over fiscal policy has locked the government's debt ceiling at US$16.7 trillion (S$21 trillion) since early this year.
The Treasury until now has been able to operate under that level, but spending commitments mean that by the end of October it will need to borrow more or default on obligations.