Six former treasury secretaries on Wednesday urged Congress to take swift action to raise or suspend the US debt limit or risk “serious damage to the economy and national security.”
Warnings from some of the nation’s top economists join a growing chorus of voices from the public and private sectors who say a failure to meet borrowing limits could push the fragile US economy into yet another economic recession.
The Treasury Department estimates it will have enough money to pay government bills until a date in October, but has yet to come up with a specific drop dead date.
Former Treasury Secretaries Henry Paulson, Timothy Geithner, Larry Summers, Jack Lew, Robert Rubin and Michael Blumenthal told House Speaker Nancy Pelosi, D-Calif. That even flirting with an American flaw for the first time could harm markets. can tremble.
“As former Treasury Secretaries, we are writing to express our deep sense of urgency to initiate and complete a viable legislative process needed to raise the debt limit, together with management, administration and the President of Congress. Let’s go quickly, ”he wrote.
“Even a short-term default could jeopardize economic growth,” the group said. “This creates the risk of market volatility and undermines economic confidence, and it will prevent Americans from obtaining essential services. It would be very damaging to the full confidence of the United States and undermine confidence in credit, and it will be difficult to repair the damage. “
Although the former secretaries addressed the Speaker of the House, they sent copies to House GOP Leader Kevin McCarthy, R-Cal., Senate Majority Leader Chuck Schumer, DNY, and Leader from the Senate Minority Mitch McConnell, Republican of Kentucky.
Former Treasury Secretary Steven Mnuchin, who served under former President Donald Trump and did not sign the letter, did not immediately respond to CNBC’s request for comment.