Lawmakers Looking At $2.4 Trillion In Debt Limit Increase

According to comments obtained by Reuters, Senator Jon Kyl (R-AZ) said that lawmakers are looking to increase the debt limit by $2.4 trillion through the end of next year. A rise of $2.4 trillion would require $2.5 trillion or more in savings.

"To go to the end of the year next year you have to do about $2.4 trillion in debt ceiling (increases), which means about $2.5 trillion at a minimum in savings" over 10 years or more, Kyl told reporters.

Kyl said that a deal needed to be reached next month.

If the debt limit is not increased, it would cause a technical default on U.S. debt, which would play havoc in currency, equity, and fixed income markets around the world.