The US president accused Republicans of holding the economy hostage by demanding spending cuts to raise the debt limit.
US President Joe Biden has warned that the economy could enter a recession and lose millions of jobs unless Republicans agree to raise the nation’s $31.4 trillion debt ceiling before a fast approaching deadline.
In a campaign-style speech in a swing district in New York state on Wednesday, Biden accused Republicans of holding the economy hostage by demanding “devastating” spending cuts in exchange for a limit increase. in debt.
“We’re bringing jobs back to all of America,” Biden said at an event in Valhalla, New York, home to a congressional district that Republicans narrowly won in last year’s midterm elections. November.
“This is not the time to put everything at risk, to threaten a recession, to put millions of jobs at risk, to undermine America’s standing in the world.”
The Biden administration and congressional Republicans have struggled to find common ground on raising or suspending the debt ceiling to prevent the US from defaulting on its debt within weeks.
The US treasury department has indicated that it may not be able to pay its bills by June 1.
Republicans insist they will only support raising the debt limit if Biden agrees to retroactive spending cuts, while the president wants to negotiate the budget separately.
In April, House Republicans passed a plan that seeks $4.5 trillion in deficit savings by cutting spending, scrapping tax breaks for clean energy, and revising Biden’s amnesty plan. the student loan.
Biden and congressional leaders will meet on Friday to discuss how to avoid a future default crisis after failing to reach a deal earlier in the week.
Last week, White House economists estimated that a protracted default could cost up to 8 million jobs and wipe out half the value of the US stock market.
Mitch McConnell, the leading Republican in the Senate, earlier this week assured that Congress will not allow a default to occur, telling reporters: “The United States of America will not default.”