Posted on 10 Aug 2009
Timothy Geithner, the U.S. Treasury Secretary, has requested that Congress increase the whopping $12.1 trillion debt limit, saying it is "critically important" that they act in the next two months.
In a letter to U.S. lawmakers, Geithner said that the Treasury projects that the current debt limit could be reached as early mid-October. Increasing the limit is important to instilling confidence in global investors, Geithner said.
The Treasury didn't request a specific increase in the letter. "It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Geithner said in a letter to lawmakers.
Geithner said that it is "clearly a moment in our history" that requires support from both Democrats and Republicans for the increase. "Congress has never failed to raise the debt limit when necessary," said Geithner.
The non-partisan Congressional Budget Office said Thursday the federal government's budget deficit reached $1.3 trillion through the first ten months of fiscal 2009, on track to reach a record high of $1.8 trillion for the 12-month period.