Timothy Geithner: Treasury Hit Debt Ceiling Before New Year’s

Timothy Geithner

Timothy Geithner

The U.S. Treasury hit the debt ceiling Dec. 31, 2012 and is running out of avenues to avoid a default, Treasury Secretary Timothy Geithner has told Congress in a letter.

According to The Hill newspaper, Geithner told Capitol Hill leaders the country could default by mid-February unless Congress raises the $16.4 trillion borrowing limit.

Geithner said benefit payments to senior citizens and veterans could be at risk in the event of a default and the deficit could even increase, according to Erik Wasson’s story.

According to Bloomberg, Geithner also said the Treasury will give Congress a more detailed estimate of when the potential default could happen.

The Bipartisan Policy Center projects the Treasury will run out of money to pay its bills sometime between Feb. 15 and March 1, Bloomberg reports.

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