U.S. debt restrict improve not wanted this yr -Sen. McConnell By Reuters

WASHINGTON (Reuters) -U.S. Senate Republican Chief Mitch McConnell on Tuesday downplayed the chance the chamber will vote by yr’s finish to boost the federal authorities’s statutory restrict on borrowing, noting that such laws will not be wanted till subsequent yr.

“I do not assume the debt restrict problem is till someday subsequent yr,” McConnell instructed reporters when requested whether or not the Senate may vote on a rise in the course of the chamber’s post-election work session that started on Monday and will prolong till late December.

Treasury Division officers have voiced a need for Congress to boost the debt restrict throughout this Congress, fearing that it may turn into harder subsequent yr if Republicans, as anticipated, take majority management of the Home of Representatives from Democrats.

Many conservative Republicans have advocated holding again on a debt restrict improve subsequent yr till important home spending cuts are enacted by Congress, elevating fears of a potential historic default on debt funds by the federal authorities.

That, in flip, may shake world monetary markets.

Democrats have been urging well timed motion to keep away from such shocks to the U.S. economic system and monetary markets.