WASHINGTON - Treasury Secretary Timothy Geithner says he will immediately halt investments in two big government pension plans so the government can continue to borrow money.
He told Congress yesterday that the government had officially reached its $14.3 trillion borrowing limit. He reiterated that if lawmakers do not increase the borrowing limit by Aug. 2, the government is at risk of an unprecedented default on its debt.
The debt limit is the amount of money the government can borrow to help finance its operations. Republicans have insisted that the White House first agree on spending cuts.