Lew Sees No Alternative to Congress Raising Debt Limit by Feb. 7

Source: Bloomberg

By Ian Katz and Kasia Klimasinska - Nov 19, 2013

U.S. Treasury Secretary Jacob J. Lew urged Congress to raise the debt limit well in advance of a February deadline, calling an increase necessary to preserve the nation’s promise to its creditors.

“There really is no alternative but to raise the debt limit when you need to borrow in order to pay the bills,” Lew said at a conference in Washington today. “The full faith and credit of the United States -- whether it’s bonds or contracts or benefits -- has to be honored.”

Lew said his department can use so-called extraordinary measures, the accounting steps employed to avoid breaching the debt limit, for about a month. Those measures were used during a fiscal impasse that culminated in a partial government shutdown last month.

President Barack Obama signed legislation Oct. 17, the day Lew said the U.S. would exhaust its borrowing authority, to suspend the debt ceiling until Feb. 7. The deal between Democrats and House Republicans sets the stage for another possible showdown early next year.

Read more: http://www.bloomberg.com/news/2013-11-19/lew-sees-no-alternative-to-congress-raising-debt-limit-by-feb-7.html