Hard-right Republicans say no to ‘clean’ debt ceiling increase, raising dire possibility of US defaulting on financial obligations
sent last week. “Failure to meet the government’s obligations would cause irreparable harm to the US economy, the livelihoods of all Americans, and global financial stability.”
Setting aside the fact that individual members of Congress do not sign bills, the comments from lawmakers like Greene have intensified concerns over a potential default this summer. As of now, the treasury is deploying “extraordinary” measures to keep paying its bills, but those options may be exhausted as early as June.
If Congress fails to raise the debt ceiling, it would trigger a “risk premium” for any financial transaction benchmarked to the treasury, said Gordon Gray, director of fiscal policy at the center-right thinktank American Action Forum. Gray was as a policy adviser to former Republican senator Rob Portman when the 2011 crisis unfolded, and he expressed concern that the next debt ceiling fight could bring the US economy even closer to calamity.
McCarthy has indicated his interest in negotiating with the White House over a debt ceiling bill, downplaying concerns over a potential default.
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