LIVE VIDEO: Live Newscast    Watch

Treasury Secretary Jack Lew to testify on debt limit

7:32 AM, Oct 8, 2013   |    comments
President Barack Obama walks with Treasury Secretary Jack Lew
  • Share
  • Print
  • - A A A +



(USA TODAY) -- Treasury Secretary Jack Lew will testify in Congress Thursday on raising the debt limit.

Lew will speak before the Senate Finance Committee, headed by Max Baucus, a Montana Democrat, according to the committee's website. The hearing starts at 8:30 a.m. ET.

Lew's view on the possibility of default aren't exactly secret. Lew wrote to Congress on Oct. 1, urging a swift raising of the debt limit. "If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations for the first time in our history," he wrote.

In a similar letter to Congress on Sept. 25, Lew warned about the dangers of a default, as well as the consequences of trying to prioritize which debts to pay and which to default on:

"The debt limit impasse that took place in 2011 caused significant harm to the economy and a downgrade to the credit rating of the United States. The drawn-out dispute caused business uncertainty to increase, consumer confidence to drop, and financial markets to fall. If Congress were to repeat that brinksmanship in 2013, it could inflict even greater harm on the economy. And if the government should ultimately become unable to pay all of its bills, the results could be catastrophic."

Most Watched Videos