Finance chiefs look at failure
US Treasury Secretary Timothy F Geithner met yesterday with Federal Reserve chairman Ben Bernanke and Federal Reserve Bank of New York president William Dudley to discuss the implications of a failure of congress to raise the debt limit. Any failure would lead to a possible US debt default.
"While we remain confident that congress will raise the debt ceiling soon, officials from the Treasury, Federal Reserve Board and the New York Fed met to discuss the implications for the US economy if congress fails to act," a joint statement said.
President Barack Obama and House Speaker John Boehner, seeking to avert a US default, are pursuing a broad agreement to boost the debt limit while cutting spending by trillions of dollars and overhauling the tax code.
Mr Geithner says the Treasury Department's borrowing ability will expire on August 2 unless congress raises the ceiling. But Mr Boehner said yesterday that he and the White House were "not close to an agreement" on raising the debt ceiling. (Bloomberg)