Treasury Secretary Tim Geithner says he does not believe President Barack Obama has the authority to unilaterally ignore the debt ceiling.
According to The New York Times, Geithner briefed the attendees of yesterday’s White House negotiating session on the consequences of not raising the debt ceiling by August 2 and on plans to avoid default.
Geithner said he does not believe the Constitution gives Obama or the Treasury Department the right to continue to issue debt in order to meet existing obligations.
Citing officials familiar with the talks, the Times said neither the President, nor the Democratic and Republican leaders in the room, disputed his analysis.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.