Three days before the US public debt hits its legal limit, US Treasury Secretary Timothy Geithner urged lawmakers to lift the ceiling to ensure confidence remains in the world's largest economy. "On Monday, May 16 - just three days from today - the United States will reach the debt limit set by Congress," Geithner said.
"I want to again encourage Congress to move as quickly as possible, so that all Americans will remain confident that the United States will meet all of its obligations - not just our interest payments but also our commitments to our seniors," he said.
Republicans in Congress have refused to raise the national debt ceiling, which now stands at $14.29 trillion, unless they can get the White House and its Democratic supporters to agree to sweeping long-term spending cuts. The administration of President Barack Obama has said they could agree cuts but they are also demanding some tax hikes to increase revenues. The limit will be hit next Monday, after this week's Treasury Department debt auctions are settled.
Geithner said that because of Congress's failure to act in a timely manner to raise the debt ceiling, the Treasury had begun a series of extraordinary measures that will give the legislature extra time to raise the ceiling and avert a government default on its obligations.
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