Biden talks about the devastating consequences for the US economy of declaring default
WASHINGTON, May 10 – RIA Novosti. President Joe Biden, at an event in New York, said that a possible default in the USA threatens the whole world with difficulties.
According to the head of state, the current crisis was created by the Republicans, as the US had the power to pay its debts. He stressed that in case of default, the country’s economy would go into recession and Washington’s international reputation would be severely damaged.
The U.S. Treasury notified Congress in January that “extraordinary measures” had begun in connection with reaching the estimated national debt ceiling of $31.381 trillion. The White House has asked Congress to increase that figure unconditionally. By contrast, the House of Representatives, controlled by the Republican opposition, attributes this step to cuts in budget spending.
Meanwhile, Treasury Secretary Janet Yellen had previously warned that without a decision on the public debt, the government will likely not be able to continue meeting all its obligations until June 1st.
Zakharova described the threat of default in the United States as an American ritual
I am Emma Sickels, a highly experienced journalist specializing in news and economy. As an author at News Unrolled, I cover the latest trends in the economic sector and provide readers with valuable insights into its complexities. My work has been featured in various media outlets such as The New York Times, USA Today, Bloomberg Businessweek and many more.