Biden Meets with Congressional Leaders over U.S.
President Biden held a crucial meeting with top congressional leaders to address the impending issue of the country’s debt limit.
The meeting, which took place today, comes as economists warn of a potential financial disaster if the United States defaults on its debt.
CNBC’s Kayla Tausche spoke with the widow of a veteran, highlighting the potential impact on benefits.
The discussions between President Biden and congressional leaders revolved around the ongoing standoff over government spending.
House Republicans recently passed a plan to raise the debt limit, but with the condition that Democrats agree to significant spending cuts.
The House Speaker expressed concerns about the possibility of default and its consequences.
The Senate has yet to take action on the matter, and tensions remain high.
President Biden stated his willingness to engage in separate discussions about spending cuts but emphasized that it should not be under the threat of default.
The United States has already reached its credit card limit of nearly $32 trillion, and Congress has only three weeks left to raise the debt limit before a potential default.
Economists warn that such a default would lead to severe consequences, including a stock market crash, plummeting 401(k) values, and a spike in job losses.
Missing the deadline by even a week could cost 1.5 million jobs, with the number rising to 8 million if the deadlock continues into the fall.
Either scenario could push the country into a recession.
Furthermore, federal spending, including vital programs like veterans’ benefits, could be in jeopardy.
The report featured the story of Shannon Galloway, whose late husband served in Iraq and Afghanistan.
Galloway explained that the benefits they receive from the government are crucial for their daily expenses, such as mortgage payments and utilities.
The potential disruption of these benefits due to a default is deeply concerning for families like theirs.
The article concludes by mentioning that there will be another meeting later this week in Washington.
President Biden described today’s meeting as productive and has extended an invitation to all four leaders to continue the discussions.
The outcome of these negotiations will be crucial in determining the country’s financial stability and ensuring the uninterrupted provision of essential services and benefits to its citizens.