Treasury’s Lew warns that U.S. default could happen quickly

Washington is due to reinstate a restrict on its borrowing at the end of this week and Treasury Secretary Jack Lew mentioned the administration can use accounting measures to stay below the brand new cap unless the top of February. After that point, "very quickly it could now not be possible to satisfy the entire tasks of the federal executive," Lew stated at an event hosted by way of the Bipartisan Coverage Heart, a outstanding Washington think tank. Washington has danced perilously on the subject of the brink of default several occasions on account that 2011, and this 12 months some Republicans pledge to extract coverage concessions from Democrats prior to they allow the debt limit to upward push. Federal debt ballooned throughout the 2007-09 recession and most analysts assume Washington's duties to pay for well being care for the elderly will stress the finances more as U.S. society a while.