U.S. treasury secretary urges Congress to raise debt ceiling "as soon as possible"

U.S. treasury Secretary Steven Mnuchin on Monday urged congressional leaders to raise the federal debt limit as the department begins accounting maneuvers to avoid a default.

In a letter addressed to top lawmakers, Mnuchin said the treasury Department had begun a "debt issuance suspension period," which will last for about three months.

The treasury Department had halted investments in certain benefits funds for federal workers and retirees, Mnuchin said, noting that once the debt limit is increased or suspended, those funds will be made whole.

"I respectfully urge Congress to protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible," the secretary said.

The recipients of the letter include House Speaker Nancy Pelosi, Senate Republican Leader Mitch McConnell, Senate Democratic Leader Chuck Schumer, House Republican Leader Kevin McCarthy, and the chairmen and ranking members of the House Ways and Means Committee and the Senate Finance Committee.

The debt ceiling was previously set at 20.5 trillion U.S. dollars, and Congress voted in February 2018 to suspend the debt limit through March 1, 2019, as part of a bipartisan budget deal, and the suspension has ran out Saturday.

Data released by the treasury Department last month showed that the national debt has reached a record high of more than 22 trillion U.S. dollars.

The treasury Department could run out of money by the end of September unless the Congress takes action to either extend the suspension of debt limit or increase the limit, the Congressional Budget Office (CBO) said last week.

"If that occurred, the government would be unable to pay its obligations fully, and it would delay making payments for its activities, default on its debt obligations, or both," the CBO said.

Federal Reserve Chairman Jerome Powell told Congress in a testimony last week that it would be "a very big deal" for the U.S. government not to pay all the bills as and when due.

"It's beyond even consideration. The idea that the U.S. would not honor all of its obligations and pay them when due is something that can't even be considered," the central bank chief said.