Categories: Fedweek

Debt Limit Also a Non-Factor for a Year

In another possible portent of a less contentious budgetary year, Congress dealt with the most recent debt ceiling problem with relative ease, in effect setting the limit aside until next March. That was unlike several similar situations of the recent past in which the government came close to default amid budgetary brinksmanship—one of which created sequestration, in turn triggering the furloughs, hiring freezes and other limits on spending on federal personnel last year. For a short time, the Treasury once again stopped issuing the special securities that make up the TSP’s G fund but once again there was no direct impact on investors and the fund has been reconstructed as if nothing had happened. That maneuver has now been used at least once, and sometimes more than once, each of the last four years.

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