Treasury Reassures Markets About Secret Debt-Ceiling Plan
- Mnuchin staff tells traders debt prioritization not an option
- Trump administration is leaning on Congress to raise ceiling
A statue of James A. Garfield stands in the Capitol Rotunda in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Treasury Department officials called bond traders and their advisers on Friday to assure them that the Trump administration isn’t considering prioritizing U.S. debt payments if Congress fails to increase the nation’s borrowing authority later this year, according to two people familiar with the matter.
The calls came after Bloomberg News published a story about worries among traders that Treasury Secretary Steven Mnuchin may have to employ a secret plan written by the Obama administration to make sure debt payments are made, potentially at the expense of salaries for government employees, payments to contractors and other obligations.