On Sunday, Joe Biden’s government warned that the United States would enter a “recession” that could cause the loss of “millions of jobs,” if the agreement to raise the debt ceiling does not succeed.
“If Congress fails to raise the debt ceiling before defaulting, we will go into a recession and that will be catastrophic,” Wali Ademo, Deputy Secretary of the Treasury, warned again on CNN.
He insisted that “the United States has never defaulted on its debt, and we must not default,” explaining that such a situation could cause the loss of “millions of jobs.”
The government and financial institutions have been warning for several weeks of default risks in the country from June, if no agreement is found in Congress.
The Democrats and Republicans are engaged in a confrontation over the issue of the debt ceiling, as the Republicans refuse, at the present time, to raise it without major budget cuts, which Joe Biden rejects.
On Sunday, Mr. Adeyimo highlighted the efforts of the president, who in March unveiled a plan to “cut the deficit by $3,000 billion over ten years.”
The Treasury representative also welcomed the ongoing “constructive” discussions between the various parties.
A new meeting between President Joe Biden and congressional leaders is scheduled for the beginning of the week on this topic.
Joe Biden, who is visiting Delaware, in the northeast, on Saturday, mentioned the topic briefly.
“We are moving forward,” he assured the press, referring to a “real discussion,” but admitted that no agreement had been reached yet.
The debt of the world’s largest economy reached $31 trillion on January 19, the ceiling beyond which the country can no longer issue new loans to finance itself.
Without a deal, the US will find itself in default since the beginning of June, the Congressional Budget Service (CBO) called Friday.
This unprecedented situation, in which the state can no longer pay its bills and its civil servants, could overburden the global economy.