Mnuchin Says Markets Shouldn't Be 'Concerned' With Debt Ceiling

U.S. Treasury Secretary Steven Mnuchin said in a CNBC interview Thursday that under "the most conservative" scenario there may be a chance the federal government has a cash flow "issue" in early September.

What Happened

In the event the U.S. government runs out of cash in September, it will not be able to issue payments on the outstanding $22 trillion debt load. However, Mnuchin said on CNBC "the market shouldn't be concerned" as "everybody is in agreement."

Mnuchin said both sides of the political aisle agree it would be unwise to put the U.S. government in a scenario where it could default on payments. As it stands now, no one in the government wants the issue to turn into a government shutdown.

"We're working hard," Mnuchin said. "We'll get there one way or another."

Why It's Important

Despite heightened tensions between Republicans and Democrats, the two sides are showing unity to make sure the federal government remains funded. Mnuchin said he is having "daily conversations" with House Speaker Nancy Pelosi and an agreement on top-line spending numbers over a one-year and two-year period were reached.

U.S. lawmakers who would be needed to reach a debt ceiling agreement will leave for the August recess on July 26. A deal would likely need to be confirmed prior to the end of July.

Related Links:

How Does The Debt Ceiling Affect Me?

How The 'Debt Ceiling' Works