Photograph by AgnosticPreachersKid
The US could default on the debt obligations by March warns US Treasury Secretary Jack Lew.
American politicians agreed to suspend the debt limit in October as part of a deal to reopen the federal government, but the $16.7 trillion (£10.2 trillion) cap will be reinstated on 7th February.
The reinstatement of the debt ceiling has reignited fears that the country could run out of funds and default on its debts within three weeks said Lews, speaking at the Bipartisan Policy Center in Washington on Monday.
As the US issues tax refunds for those that overpaid in the spring, Lews warned that this could push the government into defaulting, as it will not have the cash on hand.
In past years, Republicans have used the debt ceiling as a way to push for policy changes from the Obama administration, but after feeling the brunt of popular criticism for shutting down the government in 2012, party leaders seem reluctant to use such brinkmanship this time around.
