Trying to plan your 2017 vacation around the next federal debt ceiling standoff? Well, the Treasury Department can offer you no guidance—at least not yet.
The Treasury Department made available its debt managers—the people in charge of making sure there’s no default on the almost $19 trillion in public debt—for slightly more than eight minutes Wednesday as part of the department’s quarterly “refunding” process, where it sets up a series of high-profile debt auctions in the Nov. 7 week.
As part of that, Daleep Singh, the Treasury’s acting assistant secretary for financial markets, was asked by reporters how long into 2017 he expected Treasury could continue to borrow without another suspension or an increase in the debt ceiling.
“At this point it’s truly too early to give you an estimate on the length of extraordinary measures,” Singh said. “The fiscal flows in the first quarter are especially uncertain. That’s tax refund season. So we can’t give you a sense now of the length that those measures would have use.”
The current suspension of the debt ceiling is slated to expire in March 2017. In recent similar episodes, suspension periods that ended early in the year allowed Treasury to use its various accounting moves—Singh’s “extraordinary measures”—to buy enough time so that the “dropdead” date didn’t arrive until the fall.
The Bipartisan Policy Center has said it’s confident Treasury would have enough borrowing room until at least mid-summer 2017. Nancy Vanden Houten, senior research analyst with analytical firm Stone & McCarthy Research Associates in Princeton, N.J., said her “ballparked” estimate was for late summer or early fall.
Of course, this all assumes there’s a Democratic president and a Republican Congress that will, as in the past, seek policy concessions in return for another suspension or a debt limit increase. If there should be unified government, Republican or Democrat, the next step in avoiding a debt default could actually be less dramatic.
And make vacation planning easier.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)