The US
national debt will reach a statutory limit next week, forcing the
Treasury to halt sales of certain securities and rely on
“extraordinary measures” to continue paying government bills
until Congress can raise or suspend the limit this fall.
The 2015 law
that suspended the debt ceiling will expire at midnight on March 15,
at which point the US national debt will be just over $20 trillion.
“Treasury
anticipates that it will need to start taking certain extraordinary
measures in order to temporarily prevent the United States from
defaulting on its obligations,” Secretary Steven Mnuchin wrote
to Congress in a letter dated March 8 and made public on Thursday.
One of those
measures would be suspending the sale of state and local government
series (SLGS) securities “until the debt limit is either raised
or suspended,” Mnuchin wrote.
“I
encourage Congress to raise the debt limit at the first opportunity,”
he added.
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