The budget deal brokered by Congress this week lets Treasury keep borrowing until February 7 to pay the country’s obligations, and by doing so, avert default.
Does that just tee up Washington for another debt ceiling fight in cold, dark February?
That’s because on February 8 Treasury will still have authority to use the special accounting maneuvers called “extraordinary measures.” Those allow Treasury to keep paying bills without going over the debt limit.
And that can buy Treasury time during a standoff in Congress. Just how much time isn’t known yet.