Treasury dips into pension funds to avoid debt

January 18, 2012

The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.

“I will be unable to invest fully” the federal employees retirement system fund beginning Tuesday, Treasury Secretary Timothy Geithner said in a letter to Democratic and Republican leaders in Congress.

The House of Representatives is expected to vote on Wednesday on the Obama administration’s request to raise the country’s legal debt limit to $16.394 trillion.

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