Biden warns of severe recession if US defaults

The US economy will fall into a deep recession in the event of a default. This was stated by US President Joe Biden following a meeting with Congress on the issue of raising the national debt ceiling, transmits CNN.

“Congressional staff will continue to meet daily. And everyone in the meeting understood the risk of default. Our economy will fall into a serious recession,” he warned.

Biden stressed that the US pays all the bills. “Default prevention is the primary responsibility of the US Congress,” he added.

Senate Minority Leader Mitch McConnell also said the US would not default. Biden agreed with him: “He’s absolutely right.” McConnell also urged the US President to strike a deal with Speaker of the House Kevin McCarthy.

The next meeting with Congress will take place on May 12. This was announced by McCarthy, specifying that the meeting did not bring any changes on the issue of raising the debt ceiling.

May 7 US Secretary of the Treasury Janet Yellen warnedthat in early June the United States may face default if the country does not pass a bill to raise the debt ceiling.

The House of Representatives (the lower house of the US Parliament) at the end of April approved a bill to raise the public debt limit, but with a significant tightening of budget policy, including a reduction in government spending. In the House of Representatives, the Republicans have a majority, in order for the law to pass further, it must be approved in the Senate, where Democrats predominate. The bill, announced by Republican Speaker of the House Kevin McCarthy, raises the ceiling by $1.5 trillion but cuts $4.5 trillion in spending. Democrats do not support the proposal.