UPDATE 1-Geithner says Congress will pass debt limit increase

Wed Apr 13, 2011 6:55pm EDT

(Adds further comment)

WASHINGTON, April 13 (Reuters) - Treasury Secretary Timothy Geithner said on Wednesday that Congress will allow the country to borrow more by agreeing to increase the $14.3 trillion debt limit.

"Congress will pass an increase in the debt limit," Geithner told PBS Newshour.

Republicans have said they are unwilling to raise the debt ceiling without some reforms to the government spending.

Geithner said there were some lawmakers who want to take debt ceiling negotiations "to the brink" and warned that the United States could not take that risk.

"So you want Congress to move as quickly as possible to raise that, and of course, they recognize that they have to do that," he said.

Treasury has forecast that the limit will be reached by May 16. After that point, Treasury can take emergency measures to avoid hitting the debt ceiling. But those actions will only give the United States about a two-month window before Treasury is unable to issue debt to fund government operations. (Reporting by Glenn Somerville and Rachelle Younglai; Editing by Jan Paschal)

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Comments (74)
RogerCfromSD wrote:
To the brink and beyond, you criminal.

Apr 13, 2011 8:46pm EDT  --  Report as abuse
delquattro wrote:
If Republicans raise the debt limit then they will have proven that they are the same spenders they were under Bush. By not raising the debt ceiling budget cuts become automatic.

Apr 13, 2011 8:56pm EDT  --  Report as abuse
tommize wrote:
Repubs MUST tie the budget and their wants and druthers to this debt ceiling. We know the bamster’s word is useless so everything has to pass on one signature. The Rs have blinked on everything so far. They need to hold on this one.

Apr 13, 2011 9:03pm EDT  --  Report as abuse
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