U.S. May Top Debt Limit Sooner Than Forecast, Forcing Congress's Hand

Source: Bloomberg

Congress has been acting like it has months to raise the U.S. debt limit, but lower tax revenue projections mean lawmakers could face a tighter deadline, according to an independent policy group.

The Bipartisan Policy Center said Monday there is a “significant risk” that the U.S. will breach its debt limit in early September unless Congress acts. The group’s evaluation marked a revision from its previous forecast of an October to November date at which the U.S. will default on payment obligations.

The Treasury Department has been using so-called extraordinary measures to meet debt obligations since March 2, when the U.S. reached its $22 trillion limit on borrowing.

Lawmakers from both parties say there is no way the U.S. will default, but thus far there has been little urgency to act on a debt limit solution. Treasury Secretary Steven Mnuchin told Congress in May that the default deadline could come as soon as “late summer.”

Read more: https://www.msn.com/en-us/news/politics/us-may-top-debt-limit-sooner-than-forecast-forcing-congresss-hand/ar-AAE2maL?li=BBnb7Kz