2023-05-14 17:25:48
Joe Biden’s government warned on Sunday that the United States would enter “a recession”, which might cause the loss of “millions of jobs”, if an agreement on raising the debt ceiling does not succeed.
“If Congress fails to raise the debt ceiling before the default, we will enter a recession and it will be catastrophic,” Wally Adeyemo, Deputy Secretary of the Treasury, warned once once more on CNN.
“The United States has never been in default on the debt, and we must not be,” he insisted, explaining that such a situation might cause the loss of “millions of jobs” .
The government and financial institutions have been warning for several weeks regarding the risk of default that the country runs from June, if an agreement is not found in Congress.
Democrats and Republicans are waging a standoff over the subject of the debt ceiling, with Republicans refusing, for the moment, to raise it without massive budget cuts, which Joe Biden refuses.
Mr. Adeyemo on Sunday highlighted the efforts made by the president, who in March unveiled a plan providing for “a deficit reduction of 3,000 billion dollars over ten years”.
The Treasury representative also welcomed the “constructive” discussions underway between the different parties.
A new meeting between President Joe Biden and the leaders of Congress is due to be held at the beginning of the week on this subject.
Joe Biden, visiting Delaware, in the northeast of the country, on Saturday briefly mentioned the subject.
“We are moving forward,” he assured the press, referring to a “real discussion”, but admitting that an agreement had not yet been reached.
The debt of the world’s largest economy reached 31 trillion dollars on January 19, the ceiling beyond which the country can no longer issue new loans to finance itself.
Without an agreement, the United States will find itself in default of payment from the beginning of June, recalled Friday the service of the budget of the Congress (CBO).
This unprecedented situation, in which the country might no longer pay its bills and its civil servants, might weigh down the world economy.
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