CHN: Congress Urged to Pass Clean Debt Ceiling Increase
Even before last year’s election, Congress knew it would have to act to raise the debt ceiling sometime this year, when the U.S. will again reach its borrowing limit. Congress has the sole authority to increase the amount the Department of the Treasury can borrow to pay its bills.
According to CQ, Treasury Secretary Steven Mnuchin is calling on Congress to increase the debt limit before the August recess. Unlike White House Office of Management and Budget Director Mick Mulvaney, who has previously said he would like to see spending cuts attached to an increase in the debt ceiling, Secretary Mnuchin has urged Congress to pass a “clean” increase, without tying the measure to new spending cuts or other ideological policy changes. Most Democrats and advocates are also adamant that Congress pass a clean debt ceiling increase. Economists and business leaders overwhelmingly agree that failure to raise the debt ceiling would do catastrophic damage to the U.S. and to economies and markets worldwide.