Geithner confident of deal to raise US borrowing limit
That is why he claims to be confident a deal will be struck to raise the government’s borrowing limit before August 2.
Washington hit its debt ceiling on May 16 but has used spending and accounting adjustments, as well as higher-than-expected tax receipts, to pay its bills and continue operating.
But the government is set to run out of money by August 2 and is facing default.
Negotiations between the White House and congressional leaders have reached a crisis point with disputes over spending cuts and additional tax revenue.
But Geithner said President Barack Obama and House speaker John Boehner are still talking.
He said the US has a top credit rating and that despite all the rhetoric, there are signs both sides are coming closer to an agreement.
He said Congress must reach a deal to lift the threat of a US default for the next 18 months until after the November 2012 elections.
“The most important thing is that we remove this threat of default from the country for the next 18 months,” he said. “You want to take this out of politics.”
But Geithner acknowledged that after weeks of heated and tough negotiations on raising the $14.3 trillion debt ceiling, politics had entered the discussions, saying “they have taken this a little too far, frankly”.
He reiterated the Obama administration’s opposition to any deal which would need two votes in Congress to increase the debt ceiling — one now and another in early 2012 as the presidential election campaign gets into full swing.
