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June 15, 2011

Admin Presses Congress on Debt Limit 
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The Obama administration continues to lobby Congress for an increase to
the debt limit ahead of an August 2 deadline, when the government is
expected to reach its $14.3 trillion borrowing limit. White House
officials say they intend to convince corporate executives to pressure
House Republicans to approve an increase to the debt cap. On Tuesday,
Federal Reserve Chair Ben Bernanke warned of dire consequences if
Congress fails to act.

Federal Reserve Chair Ben Bernanke: "Failing to raise the debt limit
would require the federal government to delay or renege on payments for
obligations already entered in to. In particular, even a short
suspension of payments on principal or interest on the Treasury's debt
obligations would cause severe disruptions in financial markets and the
payments system, induce rating downgrades of U.S. government debt,
create fundamental doubts about the creditworthiness of the United
States and damage the special role of the dollar and of Treasury
securities in global markets in the longer term."

Vice President Joe Biden continues to hold bi-partisan meetings on
Capitol Hill in a bid to reach a deal. Republicans have been pushing for
steep spending cuts in return for raising the debt ceiling.



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