New Jersey, specializing in the financial position of the government market research firm Wrightson ICAP LLC said on Tuesday, the U.S. Treasury is likely to be representative of the Federal Reserve to cut borrowing, because the Obama administration and Congress are to increase government debt ceiling arguing.
Wrightson ICAP chief economist Lou - Kelandaier (Lou Crandall), said Treasury officials would supplement the financing plan may be (Supplementary Financing Program) to reduce the size of at least 50 billion U.S. dollars, the current size of the project $ 200,000,000,000 . The current situation facing the U.S. government, the government debt is approaching $ 14,290,000,000,000 in debt ceiling.
U.S. Treasury Secretary Timothy - Geithner (Timothy F. Geithner) has said in the January 6, members of Congress have raised in the first quarter of this year, the federal government debt ceiling, debt or face default and can not enter the credit market risk. Geithner said at the time, the U.S. government may be March 31 to May 16 reached between the debt capacity of the legal limit. He pointed out that unless Congress raised the cap on this before, or face serious consequences.
When asked by the Ministry of Finance should be the Fed to Offer Treasury supplementary financing plan, the Department will be out of reserves in the banking system, which the Fed controls interest rates will make it easier to work. The Fed said in a year, established in 2008, the supplementary financing program is designed to support the financial system, the plan will help the Fed's monetary policy objective, it may become the future withdrawal of part of economic stimulus measures.