Wednesday, 20 July 2011

Fed planning for potential US default!!

The US Federal Reserve is actively preparing for the possibility that the United States could default as a deadline for raising the government's USD 14.3 trillion borrowing limit looms, a top Fed policymaker said on Wednesday.

Philadelphia Federal Reserve Bank President Charles Plosser said the Fed has for the past few months been working closely with Treasury, ironing out what to do if the world's biggest economy runs out of cash on August 2.

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