Treasury Secretary Steven Mnuchin said lawmakers need to increase the debt ceiling this month to avert any risk of default on obligations like bond payments.
Speaking to reporters at a White House news briefing on Monday, Mnuchin said he has had “productive talks” with House Speaker Nancy Pelosi (D-Calif.) and that Congress, including Democrats and Republicans, and the White House all agree to a deal that a debt ceiling increase “is the first choice” in the coming weeks.
“I think we’re very close to a deal,” Mnuchin said, cautioning that “these deals are complicated.”
According to the Treasury Secretary, it’s unlikely a government shutdown would take place, and no party wants to put the credit of the United States government at risk.
“I don’t see a government shutdown looming,” he said. “That’s not an issue until the end of September, and I have no expectation that there will be a shutdown whatsoever.”
In letters sent to congressional leadership on Friday, Mnuchin warned the government could run out of money in early September unless Congress votes to raise the $22 trillion debt limit before they leave for the August recess.
Includes reporting from The Hill, The Associated Press.