Senior Republican Dismisses Default Risk, Says Treasury Can Act
- Toomey predicts Democrats will pass debt limit on their own
- Democrats, Republicans heading for shutdown showdown over debt
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The Senate’s top Republican on the Banking Committee is dismissing the threat of the federal government defaulting on debt, arguing the Treasury would act to prioritize debt payments and delay others if necessary.
“There’s absolutely 0.0% chance that anybody wouldn’t get coupon and principal payments on U.S. debt securities on time,” Senator Pat Toomey of Pennsylvania said Tuesday in an interview with Bloomberg News. “The worst that could possibly happen is there might be some vendors who would get paid a little later than they were expecting to get paid for services they provided to the government.”