McConnell and Mnuchin Predict Congress Will Raise the Debt Ceiling
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Treasury chief indicates prioritizing payments isn’t an option
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McConnell says there’s ‘no chance’ ceiling won’t be raised
Wells Fargo Economist Expects Debt Ceiling to Be Lifted
U.S. Treasury Secretary Steven Mnuchin and Senate Majority Leader Mitch McConnell predicted Congress will raise the country’s debt limit in time to prevent an unprecedented default.
“We’re going to get the debt ceiling passed,” Mnuchin said Monday at an event in Louisville, Kentucky, downplaying the idea that the Treasury’s debt-ceiling deadline could pass without action and said payments can’t be prioritized without disruption. “Everybody understands, this is not a Republican issue, this is not a Democrat issue. We need to be able to pay our debts.”
Speaking at the same event, McConnell went further, saying there is “zero chance -- no chance -- we won’t raise the debt ceiling. No chance.”
“America is not going to default, and we’ll get the job done in conjunction with the secretary of the Treasury,” the Kentucky Republican said.
Mnuchin reiterated that he will run out of authority to stay under the limit late next month and his priority when Congress returns in early September is ensuring it’s lifted.
“The first thing I look forward to working with the leader in Congress on is raising the debt limit,” Mnuchin said. “As I have indicated prior to this, come the end of September, my magic, super Treasury powers will run out, and we need to raise the debt limit. And it is my strong preference that there is a clean raise of the debt limit.”
A number of House conservatives have demanded significant spending cuts in return for lifting the debt ceiling, with some suggesting that the consequences of hitting the debt limit don’t have to be severe.
Mnuchin pushed back on that idea, saying that the federal government can’t pick and choose which of its creditors get paid.
“I know people have talked about this concept of prioritization,” Mnuchin said. “This is not about any of the debts should get paid, but not other debts,” he said, adding: “This is about having a clean debt ceiling so that we can maintain the best credit, the reserve currency, and be focused on what we should be focusing on -- so many other really important issues for the economy.”
— With assistance by Randy Woods