Treasury taking steps to avoid debt ceiling

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WASHINGTON (MarketWatch) - The Treasury Department will start immediately to take some technical steps to conserve cash to avoid reaching the debt ceiling, Treasury Secretary Timothy Geithner said Tuesday. A $1.2 trillion increase in the debt ceiling is on track to take place on Jan. 27. But first Congress has an opportunity to block the increase. Experts are not expecting a repeat of last summer's showdown over the debt ceiling, as the White House is seen having the necessary votes to overcome any objection. In a letter to the Congressional leadership, Geithner said Treasury would stop payments into the civil service retirement system until the debt limit is raised. The retirement system will be made whole once the debt ceiling is increased, Geithner said. The House of Representatives is expected to vote on the debt ceiling on Wednesday. The Senate is expected to consider the measure next week when it returns from recess. If the increase is approved, the debt ceiling would rise to $16.4 trillion and Congress would not have to revisit the issue until after the presidential election in November.