The Obama administration, specifically Timothy Geithner, has been painting a doom and gloom scenario about what will take place if Congress doesn't come up with a plan to raise the debt ceiling. The Federal Reserve is preparing for that scenario:
Philadelphia Federal Reserve Bank President Charles Plosser said the Fed has for the past few months been working closely with Treasury, ironing out what to do if the world’s biggest economy runs out of cash on August 2.
“We are in contingency planning mode,” Plosser told Reuters in an interview at the regional central bank’s headquarters in Philadelphia. “We are all engaged … It’s a very active process.”
Plosser said his “gut feeling” was that President Barack Obama and Congress will come to an agreement to increase the Treasury’s borrowing authority in time to avert a default on government obligations.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment