US President Joe Biden said on Sunday he remains “optimistic” about reaching a deal with his Republican opponents to raise the debt ceiling and avoid the default, which his administration says will have consequences. “catastrophic”.
• Also read: The United States could slip into a “recession” if no deal is reached
• Also read: One broadcast on CNN and Trump reignites the debate about his place in the media
“I remain optimistic because I’m an innate optimist, but I really believe that there is a willingness on the part of both them and us to reach an agreement. I think we’re going to do it,” Biden told reporters during a bike ride near his Delaware home.
Joe Biden’s administration warned on Sunday that the United States would slide into a “recession” that could result in the loss of “millions of jobs” if an agreement on raising the debt ceiling fails to materialize.
- Listen to Richard Latendresse’s commentary QUB radio :
“If Congress fails to raise the debt ceiling before it defaults, we will enter a recession and it will be catastrophic,” Wally Adeyemo, Deputy Treasury Secretary, warned again on CNN.
Such a situation could lead to the loss of “millions of jobs,” he stressed.
The government and financial institutions have been warning for several weeks about the risk of a default that the country faces from June if no agreement is reached in Congress.
Democrats and Republicans are at odds over the debt ceiling, with Republicans currently refusing to raise it without massive budget cuts, which Joe Biden opposes.
Mr Adeyemo on Sunday highlighted the efforts of the President, who in March unveiled a plan that calls for “a $3 trillion deficit reduction over ten years”.
The Treasury representative also welcomed the “constructive” talks between the various parties.
A new meeting between President Joe Biden and the leaders of Congress is scheduled to take place on this topic earlier in the week.
The debt of the world’s largest economy hit $31 trillion on Jan. 19, the limit beyond which the country can no longer lend to self-finance.
Without an agreement, the United States will default on payments beginning in early June, the Congressional Budget Service (CBO) reminded on Friday.
This unprecedented situation, with the country unable to pay its bills and its civil servants, could weigh on the global economy.