Postal Service May Need Emergency Rate Hike, Postmaster Says

Postmaster General Patrick Donahoe said Thursday his agency is in "the midst of a financial disaster" and may need an emergency increase in postage rates to keep operating.

Donahoe pressed lawmakers Thursday for swift action on legislation to fix his agency's finances. Without help from Congress, the agency expects its multibillion-dollar annual losses to worsen. He warned that the agency's cash liquidity remains dangerously low.

"The Postal Service is quickly moving down a path that leads to becoming a massive, long-term burden to the American taxpayer," he said.