The US president accuses 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 boost the country’s economy. Debt limit of $31.4 trillion before a fast-approaching deadline.
In a campaign-style speech in a swing district of New York state on Wednesday, 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 across America,” Biden said at an event in Valhalla, New York, which is home to a congressional district that Republicans narrowly won in the midterm elections in November.
“This is not the time to put all this 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 in a matter of weeks.
The US Treasury Department has indicated that you may not be able to pay your bills as soon as June 1.
Republicans have insisted 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 approved a plan that sought $4.5 trillion in deficit savings by cutting spending, eliminating clean energy tax breaks and reversing Biden’s plan to forgive debt. student.
Biden and congressional leaders will meet on Friday to discuss how to avoid a looming default crisis after failing to make a breakthrough earlier in the week.
Last week, White House economists estimated that a prolonged default could cost up to 8 million jobs and wipe out half the value of the US stock market.
Mitch McConnell, the top Republican in the Senate, assured earlier this week that Congress would not allow a default to happen, telling reporters: “The United States of America is not going to default.”