Debt ceiling wiggle room runs out August 2: White House

Reuters News
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Posted: Jul 26, 2011 1:04 PM
Debt ceiling wiggle room runs out August 2: White House

WASHINGTON (Reuters) - The United States has no wiggle room on the debt after next week's default deadline, White House spokesman Jay Carney said on Tuesday, adding he expected a deal to be reached through compromise before then.

"The United States hit its debt limit in May, and since May the Treasury Secretary ... has exercised all the wiggle room available to him and that runs out on August 2nd," Carney said.

"We don't believe we will get there," he said of default. "We are pushing this to the last minute, and that should not be in the case, but in the end we believe Congress will act appropriately."

(Reporting by Alister Bull and Laura MacInnis; Editing by Jackie Frank)