In a high-stakes debt meeting, President Biden affirmed that Senate Minority Leader McConnell was correct in his assertion that the United States will not default on its debt.
After meeting with congressional leaders, Biden appeared at the White House to deliver his remarks.
He expressed his satisfaction but not surprise at McConnell’s statement, emphasizing that the United States has never defaulted on its debt and never will.
Both parties agreed to continue discussions, scheduling another meeting for Friday.
In the meantime, staff members will meet daily to address the issue.
Biden underscored the dire consequences of a default, warning that it would lead to a significant recession, devastate retirement accounts, increase borrowing costs, and result in nearly 8 million Americans losing their jobs.
He made it clear that default is not an option and that America is not a deadbeat nation, as it fulfills its financial obligations.
He highlighted that the United States Congress has avoided default three times under his predecessor without causing a crisis or unsettling the markets.
Acknowledging that the national debt had increased by 40% under his predecessor, Biden highlighted it as the current problem to address.
Furthermore, he mentioned reducing the debt by $1.7 trillion during his first two years, asking if any previous president had achieved such a feat.
Concluding his remarks, Biden expressed his preparedness to initiate a plan but did not provide further details at that moment.
The meeting and Biden’s commitment to addressing the debt issue come amidst concerns about the economic implications of defaulting on the national debt.
Both parties recognize the significance of avoiding a default and are working towards finding a resolution to ensure the stability of the U.S.
economy.
