US Debt Ceiling is 19 Days Away

Congress now has two fewer days to deal with the debt ceiling.

Treasury Secretary Jack Lew said Thursday he now estimates that “no later than” November 3, Treasury is likely to exhaust special accounting measures that are keeping the country’s debt below its legal limit.
Earlier this month, he had said the alarm would start to go off on November 5.

Now, Lew said, he estimates that on November 3 the Treasury Department will only be able to pay the country’s bills with the cash it has on hand — which Lew expects to be roughly $30 billion — plus whatever daily revenue comes into the Treasury.

And soon after November 3, Treasury would not have enough money to cover the bills on some days, which can amount to $60 billion.

That estimated “X” date — when Treasury won’t have enough money to pay what’s due — will come between November 10 and November 19, according to an analysis by the Bipartisan Policy Centre.

Separately, the Congressional Budget Office this week estimated the “X” date would come “sometime during the first half of November.”


Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza