Geithner Asks Congress to Raise Debt Limit
In a Friday letter to US lawmakers, Timothy Geithner said the Treasury projects that the current debt limit, last raised in February when the $787 billion economic stimulus legislation was passed, could be reached as early as mid October.
"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," the letter said.
A Treasury spokeswoman declined to comment on the letter, Reuters reported.
Geithner did not request a specific increase in the letter; however, it is predicted that the Treasury would issue net new debt of as much as $2 trillion in the 2009 fiscal year, which ends September 30 and up to $1.6 trillion in the 2010 fiscal year.
