Geithner tells Congress the US has reached $14.3T debt limit
Treasury Secretary Timothy Geithner has informed lawmakers that the government has officially hit the debt limit.
Geithner made the announcement in a Monday morning letter to congressional leaders that said he was reducing the government’s investment in the two government employee pension funds as the nation entered a “debt issuance suspension period.”
The Treasury Department has said it can take steps to put off a default on the U.S.’s $14.3 trillion debt until Aug. 2, and the measure announced Monday by Geithner is a part of that plan.
The two retirement funds — the Civil Service Retirement and Disability Fund and the Government Securities Investment Fund — would be made whole once the debt limit is increased, according to Geithner, who said federal retirees and employees would be unaffected by the move.