US Treasury chief warns on debt row

The US Treasury Secretary Jacob Lew has urged Congress to raise the government’s borrowing limit before October 17, warning that a Republican idea to prioritise payments with cash on hand could cause “irrevocable damage” to the economy.

Trying to make such perilous choices between paying veterans or Social Security cheques is not a good option and risks the first default on US debt in history. He repeated the administration’s demand that Congress pass legislation needed to end a partial government shutdown and raise the country’s $16.7 trillion borrowing limit.