See More

Geithner confident on debt limit deal

Apr 17 2011 15:30 AFP

Related Articles

IMF tries to bridge policy rift

Obama: Save US from Third World status

US passes Republican spending plan

Obama sets goal of $4 trillion in cuts

Obama to lay out deficit plans

Congress edges toward spending deal


Washington - Treasury Secretary Timothy Geithner expressed confidence on Sunday that feuding US political parties will reach an agreement to lift the country's debt limit before its is forced to default.

With Republicans demanding longer-term spending cuts in return for voting to raise the debt ceiling, Geithner said the administration was willing to enter parallel talks, but in the end the ceiling would be raised either way.

"We want Congress to put in place a comprehensive framework, a balanced framework, that can reduce our long-term deficits. And we're going to work hard to do that," he told NBC's "Meet the Press".

"But if by the time we need to raise the debt limit, we haven't worked all that out, Congress still has to raise the debt limit."

"Leadership recognizes that," he said pointing to closed door meetings with Republicans.

The White House has warned of financial "Armageddon" if Congress refuses to raise the $14.29 trillion debt limit.

The limit is set to be reached by mid-May and lawmakers must take action by July or see the United States default on interest payments on its debt.

But the move has become embroiled in fiercely partisan battles over the economy and spending.

Though Republican leaders say they will ultimately raise the ceiling, they are demanding more expenditure cuts from programs cherished by Obama's Democrats in return.

"Congress is going to have to raise the debt limit. They understand that," Geithner told the NBC program. "That's absolutely essential to preserve the credit worthiness of the United States of America."

"Again, this is an absolutely critical thing for people to understand. This is about the trust and confidence in the American people, and the world is watching us.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.

Device lets disabled people talk through their nose

A device that converts nose breaths into speech will open new doors for people with Parkinson’s or motor neuron disease.


For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real
Check out the speed of this robo-cheetah!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...