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Timothy Geithner says Federal Gov to Hit Debt Ceiling on Dec. 31

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Timothy Geithner

Timothy Geithner has written a letter to Congress saying the federal government will hit the debt ceiling on Monday, Dec. 31, according to a CNN Money article.

As a result, the Treasury Department will begin using extraordinary measures to prevent government borrowing from exceeding limit set by Congress.

As of  Monday, the debt was $95 billion below the debt ceiling and that margins continues to decrease.

“If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures,” said Geithner.

According to the article, there is a chance the debt ceiling issue will not be resolved until the 11th hour and only after a partisan fight.


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