Treasury Secretary Steven Mnuchin put his request on paper for Congress to act on the debt ceiling before the August recess, writing to congressional leaders Friday that there’s a chance Treasury could run out of cash in early September.
“Since there is a reasonable uncertainty in projecting government cash flows, it is impossible to identify precisely how long extraordinary measures will last,” Mnuchin wrote in his four-sentence letter, referencing accounting maneuvers Treasury can engage in to carve out room under the $22 trillion debt limit.
“We model various scenarios for our cash projections. Based on updated projections, there is a scenario in which we run out of cash in early September, before Congress reconvenes,” the letter continues. “As such, I request that Congress increase the debt ceiling before Congress leaves for summer recess.”
View the complete July 12 article by Paul M. Krawzak on The Roll Call website here.