A possible default by the United States in the event of a failure of negotiations on the issue of the increase in the country’s public debt could be devastating for the country’s economy. So said US President Joe Biden.
“I don’t know what McCarthy thinks, President McCarthy. I think he looks better. And I think he knows a default will be devastating,” Biden told reporters after a meeting with congressional leaders.
Asked about possible measures to protect against the occurrence of a default in the country, Biden made it clear that he was not ruling out any measure, “except the default itself.” He also did not rule out the possibility of raising the national debt ceiling for a short period.
“I’m not ruling anything out,” Biden replied to a related question.
At the same time, the American leader said he was ready to discuss with congressional leaders the priority of public spending, without the threat of default. In conclusion, he said he was ready to continue discussions on this issue on Friday and was glad to hear at the last meeting that the country should avoid such a situation.
Previously, House of Representatives Speaker Republican Kevin McCarthy, after meeting with Biden, said it was not possible to move forward on the issue of rising public debt.
According to the head of the US Treasury, as of June 1, the country may not be able to service the public debt. As a result, McCarthy has proposed increasing the borrowing limit by $1.3 trillion or until March 31, 2024, whichever comes first. This should save $4.5 trillion.
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