Treasury Secretary Janet Yellen said it’s unlikely the U.S. will make it to June and still be able to pay its bills.
Topline
President Joe Biden cautioned Sunday that congressional Republicans may do something “outrageous” to force the U.S. to default on its loans, as the negotiations between congressional Republicans and the White House over whether to raise the debt ceiling remain uncertain and a June 1 deadline to avert a default looms.Key Facts
During a press conference after the Group of 7 summit in Japan, Biden described congressional Republicans’ demands for spending cuts in exchange for raising the debt ceiling as “extreme,” though he said he is “willing to cut spending.”
The president also said he couldn’t promise during meetings with fellow world leaders the U.S. would not default, a move that would have repercussions around the world, but he said earlier in the press conference the United States has “never defaulted on our debt and it never will.”
Biden also reiterated he was considering bypassing Congress and continuing to pay the nation’s bills by invoking an obscure clause in the 14th amendment that says the “validity of the public debt of the United States … shall not be questioned,” but noted potential legal challenges and a lack of time.
Crucial Quote
“I can’t guarantee that they will not force a default by doing something outrageous,” Biden said at the press conference, referencing congressional Republicans who have not retreated in their requests for cuts to federal spending.
