Treasury Secretary Steve Mnuchin on Wednesday said that the debt ceiling will need to be lifted by “late Summer,” earlier than some analysts had predicted.

“I haven’t been given an exact date, but I would say it’s late summer, and I share your concern and I urge Congress to raise the debt ceiling as soon as possible,” Mnuchin said at a House Financial Services Committee hearing.

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The debt ceiling, which limits how much Treasury can borrow to pay off the government’s bills, was technically reached in March, but the Treasury Department has embarked on a series of “extraordinary measures” that allow it to borrow internally to keep paying bills.

If those measures run out before Congress passes and the president signs an increase to the limit, or suspends it altogether, the government would default on its bills, which could set off a global financial crisis.

Mnuchin testified that the economic impact of such an eventuality would be “significant.”

A study released earlier this month by the Bipartisan Policy Center estimated that the debt ceiling wouldn’t need to be lifted until October or even early November.

"Everybody understands this issue and I surely hope we never get to the point late summer where we're even contemplating these things,” Mnuchin said.

The new timing projection could be one reason why the White House has become amenable to including the debt ceiling in recent negotiations over spending caps.

On Tuesday, Mnuchin participated in lengthy meetings with “the four corners,” Senate Majority Leader Mitch McConnell Addison (Mitch) Mitchell McConnellFEC flags McConnell campaign over suspected accounting errors Poll: 59 percent think president elected in November should name next Supreme Court justice Mark Kelly: Arizona Senate race winner should be sworn in 'promptly' MORE (R-Ky.), Senate Minority Leader Charles Schumer Chuck SchumerCruz blocks amended resolution honoring Ginsburg over language about her dying wish Senate Democrats introduce legislation to probe politicization of pandemic response Schumer interrupted during live briefing by heckler: 'Stop lying to the people' MORE (D-N.Y.), Speaker Nancy Pelosi Nancy PelosiHoyer: House should vote on COVID-19 aid — with or without a bipartisan deal Ruth Bader Ginsburg lies in repose at Supreme Court McCarthy threatens motion to oust Pelosi if she moves forward with impeachment MORE (D-Calif.) and House Minority Leader Kevin McCarthy Kevin Owen McCarthyMcCarthy threatens motion to oust Pelosi if she moves forward with impeachment Kate Schroder in Ohio among Democratic challengers squelching GOP hopes for the House McCarthy's Democratic challenger to launch first TV ad highlighting Air Force service as single mother MORE (R-Calif.) on a deal to increase spending levels, which needs to be reached by the start of the new fiscal year on October 1 to avoid steep, automatic spending cuts.

Democrats familiar with the meetings said that the White House had originally hoped to delay striking a deal until closer to the deadline, anticipating that they could wring more concessions from Democrats. An earlier debt ceiling deadline could have interfered with that strategy.

—Sylvan Lane contributed.