Banning ‘extraordinary measures’ could reduce default risk

By Joseph Lawler

Published October 15, 2013 4:00am ET

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Banning ‘extraordinary measures’ could reduce default risk — President Obama and Treasury Secretary Jack Lew have objected to a measure that includes language banning the Treasury from using "extraordinary measures" to create headroom under the debt ceiling in the future. (AP File) | Charles Dharapak

Republicans are trying to restrict the Treasury‘s ability to maneuver under the debt ceiling with a provision that could, counterintuitively, have the effect of reducing the possibility of a default in the future.

House Republicans are considering legislation to raise the debt ceiling and fund the government that includes language banning the Treasury from using “extraordinary measures” to create headroom under the debt ceiling in the future.

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Debt Ceiling Executive Branch Government Shutdown Jack Lew Joseph Lawler PennAve Treasury Department