Geithner mulls US Treasury exit

US Treasury secretary Tim Geithner is considering exiting the administration after the government negotiates the country's borrowing limit, reports the FT.

A source told the FT Geithner is set to review his position due to fears the country has not made enough progress in cutting down its soaring deficit. The Treasury has warned the US is at severe risk of defaulting on its debt in August if the country's borrowing limit, which stands at $14.3trn, is not increased. If the debt ceiling is not addressed the country could plunge back into recession. A resignation from Geithner will come as a bitter blow to Barack Obama as he is the last remaining part of the original economic team which took office with the president in 2009.