Geithner, speaking at an event in Washington, said that the government’s Aug. 2 limit for borrowing is “imposed by reality” unless there is Congressional action to raise the debt ceiling.
“We are making a lot of progress” on a plan to cut the deficit and raise the government’s borrowing limit, Geithner said. “We’re getting closer.”
Vice President Joe Biden’s bi-partisan deficit-reduction group has been holding meetings since May 5 to reach a compromise that would clear the way for a vote in Congress to raise the nation’s $14.3 trillion debt ceiling. Republicans are demanding trillions of dollars in budget savings, while Democrats are resisting any changes to Medicare, the long-term driver of the debt.
Geithner expressed confidence in raising the debt limit, saying that the alternative, a possible U.S. government default, is unthinkable.
To contact the reporter on this story: Cheyenne Hopkins in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Kevin Costelloe at email@example.com