US says debt limit will be hit late this year
WASHINGTON (AP) - United States Treasury officials say they still expect the government will hit the current debt borrowing limit at the end of this year. However, they say they can employ "extraordinary" measures that they have used in the past to keep the government functioning until sometime early next year.
In a statement, Treasury Assistant Secretary Matthew Rutherford said the Treasury would employ the same types of procedures it used in the past to keep borrowing under the current debt limit of US$16.39 trillion (S$19.9 trillion). The US debt currently stands US$16.16 trillion.
The US has never failed to meet its debt obligations, although the last battle over raising the debt limit in August last year went right to the last minute before a compromise was reached between the Obama administration and Congress.