A Few Clouds
83FA Few CloudsFull Forecast

US Treasury to take steps to avoid borrowing limit

Caption
FILE - In this Thursday, July 26, 2012, file photo,Treasury Secretary Timothy Geithner testifies on Capitol Hill in Washington, before the Senate Banking Committee hearing: "The Financial Stability Oversight Council Annual Report to Congress." The U.S. Treasury Department announced Wednesday, Dec. 26, 2012, it will begin taking steps this week to delay hitting the government's $16.4 trillion borrowing limit. Without those steps, the debt limit would be hit on Dec. 31. Treasury Secretary Timothy Geithner says in a letter to congressional leaders that the department will take several accounting measures to save approximately $200 billion beginning next year. The government borrows about $100 billion a month, so that would (AP Photo/Haraz N. Ghanbari, File)

WASHINGTON (AP) — The U.S. Treasury Department will begin taking steps this week to delay hitting the government's $16.4 trillion borrowing limit. Without those steps, the debt limit would be hit on Dec. 31.

Treasury Secretary Timothy Geithner says in a letter to congressional leaders that the department will take several accounting measures to save approximately $200 billion beginning next year. The government borrows about $100 billion a month, so that would keep the government from reaching the limit for two months.

Geithner says it is harder to predict how long the delay will last because ongoing negotiations over tax and budget policies make it hard to forecast what tax revenue and government spending will be next year.

The debt limit is the amount the government can borrow to help finance its operations.

Comments

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments

Reader Poll

Have you ever done genealogy research on your ancestors?
Yes
No