WASHINGTON — Treasury Secretary Jacob Lew has told Congress that by late February he will run out of steps he can take to avoid a first-ever default on U.S. debt.
In a letter to congressional leaders Wednesday, Lew said he thinks he will exhaust the bookkeeping maneuvers he can make to avoid breaching the federal borrowing limit sooner than previously thought. He had estimated in December that he could avoid a default until late February or early March.
Under an agreement that ended the partial government shutdown in October, Congress suspended the debt limit until Feb. 7. After that, Lew would start using the bookkeeping maneuvers.
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