Treasury Secretary Jacob Lew told Congress “the government could face a debt crisis as soon as late February or early March if steps aren’t taken to suspend or increase the debt ceiling, warning that the government will have much less flexibility to continuing paying bills than in past years,” the Wall Street Journal reports.
“Congress in October voted to suspend the government’s borrowing limit until Feb. 7. After that time, Mr. Lew can use emergency measures, such as suspending payments to certain pensions, to allow the government to continue borrowing money temporarily.”
“Those steps will run out quickly this time… compared with a several-month period in the prior debt ceiling standoff. That is in part because of all the tax refunds the government pays out in February and March.”