Treasury pulls back as U.S. hits debt limit again [View all]
Source: USA Today
WASHINGTON – The Treasury Department stopped issuing securities to state and local governments at noon Friday, instituting the first of what will likely be several steps to stay under the debt limit enacted by Congress.
Under the budget deal passed by Congress last November, the debt limit was temporarily suspended -- but only through Friday. Beginning Saturday, the debt limit will be reset to its current level, about $17.2 trillion.
Congress has voted to raise the debt ceiling three times since 2011. But it's missed the deadline each time, forcing the Treasury Department to use what it calls "extraordinary measures" to avoid hitting the debt ceiling.
The first of those measures is to stop accepting deposits from state and local governments, which often need a short-term place to park their proceeds from issuing bonds. Those are called State and Local Government Series bonds, or SLGS.
Read more: http://www.usatoday.com/story/news/politics/2014/02/07/treasury-debt-limit-extraordinary-measures/5278153/
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