The Obama administration warned Congress on Thursday that the government could run out of borrowing authority needed to help pay its bills as soon as February if lawmakers do not swiftly raise the federal debt ceiling.
“I respectfully urge Congress to take action to raise the debt limit at the earliest possible moment,” Treasury Secretary Jack Lew said in a letter to congressional leaders.
Congress passed a two-year budget deal on Wednesday to trim some spending cuts planned for next year, and the pact reduces the risk of a government shutdown. But the legislation does nothing to avoid a potential unprecedented U.S. debt default that could occur if Washington does not raise the borrowing cap soon.
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