Treasury Secretary Timothy Geithner said the Federal Government could, through various accounting maneuvers, avoid going into default after the United States breached its current debt limit of $14.3 trillion in May. However, he said the accounting hoodoo could work only until Aug. 2 at the latest, and he urged lawmakers to vote to extend the debt limit as soon as possible.
On Tuesday, Senate Minority Whip Jon Kyl (R-Ariz.) said he heard that the Treasury may soon announce its ability to extend that deadline. Kyl made the remarks to reporters following a weekly Republican policy luncheon, Fox News reported.
An unnamed House Republican leadership aide cautiously confirmed the rumor to the news outlet: “We know for sure they are going to update the deadline (Friday)… We have heard from those who watch this type of thing that it’s likely they will move it back, but we have not heard from Treasury that it is definitely going back. So I guess we’ve heard that, but not from Treasury, which is the only group that actually knows when we’ll run out of cash.”
However, Treasury spokeswoman Colleen Murray told the website in a statement, “We will provide an update on the debt ceiling outlook at the beginning of July, as we have done at the beginning of each month this year, but it is unlikely that the date will move by more than a day or two — if at all.”