The U.S. Treasury Department is estimated to have enough authority to continue borrowing through “at least mid-February” 2013, the Congressional Budget Office said in a report today that will affect the negotiations over the fiscal cliff.
The U.S., with $16.3 trillion in debt, is nearing the $16.4 trillion debt ceiling and Congress must act to raise it. CBO’s estimate assumes that Treasury will use a series of “extraordinary” steps, as it has done in the past. The estimate, CBO said, is subject to adjustment based on actual revenue collections and payments.
“Given the magnitude of the government’s daily cash flows and uncertainty about the size of certain key transactions over the next few months, it is difficult to be precise about the date on which the Treasury will lose its authority to borrow additional funds,” the report said.