Home / US / The US government expires faster than expected, warns Mnuchin

The US government expires faster than expected, warns Mnuchin



In a letter to the Democratic House speaker Nancy Pelosi, Mnuchin wrote that the United States could make its commitments as soon as early September before Congress returns from its summer upturn.

"Based on updated forecasts, there is a scenario where we expire money at the beginning of September before the congress converges," wrote Mnuchin in a letter.

The federal government has not been able to borrow money since March, when congressional borrowing limits came into force. US Treasury, facing a growing deficit thanks in part to President Donald Trump's 2017 tax cuts, had said it had enough money to remain until the fall.

Pelosi and Mnuchin have spoken three times a week in an attempt to skip negotiated budget and debt ceiling negotiations and several sources say that the new standard forecasts have provided an accelerator for these efforts.

Mnuchin and Pelosi are likely to talk again Friday. Pelosi told reporters that she had not yet read Mnuchin's letter to Capitol Hill, but she knew it was coming.

In his letter, Mnuchin at the Congress called to restore the borrowing power by increasing the debt ceiling before the Congress leaves for its regular August trip.


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