WASHINGTON: United States President Joe Biden has warned that the economy could enter a recession and shed millions of jobs unless Republicans agree to raise the country’s 31.4 trillion dollars debt ceiling before a fast-approaching deadline.
In a Wednesday campaign-style speech in the swing district in New York state, Biden accused Republicans of holding the economy hostage by demanding “devastating” spending cuts in exchange for raising the debt limit.
“We are bringing jobs back all across America,” Biden said at an event in Valhalla, New York, home to a congressional district that Republicans narrowly won in mid-term elections in November.
“This is no time to put all this at risk, to threaten a recession, to put at risk millions of jobs, to undermine America’s standing in the world.”
The Biden administration and congressional Republicans struggled to find common ground on raising or suspending the debt ceiling to prevent the United States from defaulting on its debt within weeks.
The United States treasury department has indicated it may be unable to pay its bills as soon as the first of June.
Republicans have insisted they’ll 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 seeking 4.5 trillion dollars in deficit savings by cutting spending, scrapping tax breaks for clean energy, and reversing Biden’s plan to forgive student debt.
President Biden and congressional leaders are to meet to discuss how to avert an impending default issue after failing to reach a breakthrough earlier in the week.
The previous week, White House economists estimated that a protracted default could cost 8 million jobs and wipe half the value off of the United States stock market.
