Debt ceiling will be hit in October

The Congressional Budget Office on Thursday projected that the U.S. Treasury would “most likely” run out of cash in early to mid-October unless Congress raises the debt ceiling.

The exact timing is unclear, the CBO said in a new report, as unpredictable swings in revenues and outlays may deplete funds more quickly or slowly than projected.

Treasury Secretary Steven Mnuchin has urged Congress to lift the debt limit before its August recess, though he has said that the nation can likely pay its bills if they wait to act until September.

He has also warned that the closer the U.S. gets to breaching the debt ceiling, the more likely financial markets are to react unfavorably.

On Thursday, following the release of the CBO report, he again urged Congress to take action.

“For the benefit of everybody, the sooner that they do this the better,” he said at a White House briefing.

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