Treasury secretary formally notified Congress of the uncertainty on Friday
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.