Mitch McConnell: 'Zero Chance' U.S. Fails to Raise Debt Ceiling -- Update
August 21 2017 - 2:22PM
Dow Jones News
By Richard Rubin and Kate Davidson
Senate Majority Leader Mitch McConnell (R., Ky.) said Monday
there was "zero chance" that the U.S. would fail to raise the
federal debt ceiling.
Mr. McConnell expressed confidence in Congress's ability to
avoid missing federal payments in advance of a legislative sprint
in September that will also address expiring government funding and
several other pressing items.
"There is zero chance, no chance we won't raise the debt
ceiling," he said at an event in his hometown, Louisville, Ky.,
with Treasury Secretary Steven Mnuchin.
Mr. Mnuchin said his "magic super Treasury powers" that allow
the government to conserve cash and avoid issuing new debt will run
out at the end of September.
If the debt ceiling isn't raised to allow new borrowing, the
U.S. could default on its debt or miss payments of benefits and
salaries.
"This is not about spending money," Mr. Mnuchin said. "This is
about paying for what we've spent, and we cannot put the credit of
the United States on the line."
What is still unclear is how the debt ceiling might get raised,
while the bill will be a significant test for the Republican
majorities in Congress and President Donald Trump.
Mr. Mnuchin reiterated his preference for a "clean" debt-limit
increase without policy strings attached. But Republicans have for
years insisted on conditions such as spending cuts.
In the Senate, a debt-limit bill will likely need to be
bipartisan, because it would take 60 votes to overcome procedural
hurdles.
Lawmakers return to Washington in September, after their August
recess and the Labor Day holiday.
Write to Richard Rubin at richard.rubin@wsj.com and Kate
Davidson at kate.davidson@wsj.com
(END) Dow Jones Newswires
August 21, 2017 14:07 ET (18:07 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.