Politico...
Geithner warns
Congress on need for debt boost, extends default deadline
Treasury Secretary Timothy Geithner is warning that the federal
government will begin employing “extraordinary measures” to avoid as
financial crisis as the United States nears its debt limit.
But Geithner also extended the absolute deadline for a U.S. default on
its debt until Aug. 2, three weeks later than previous estimates.
Geithner said “stronger than expected tax receipts” pushed the deadline
back from mid-July.
In a letter to Senate Majority Leader Harry Reid (D-Nev.) on Monday,
Geithner said the Treasury would begin postponing some debt offerings
this week, as well as suspend daily “reinvestment” of some Treasury
securities.
“While this updated estimate in theory gives Congress additional
time to complete work on increasing the debt limit, I caution strongly
against delaying action,” Geither said. “The economy is still in the
early stages of recovery, and financial markets here and around the
world are watching the United States closely. Delaying action risks a
loss of confidence and accompanying negative economic effects.”
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