As the clock ticks towards the June 1 debt ceiling deadline, President Joe Biden and House Speaker Kevin McCarthy have moved their dispute from the halls of Congress to the White House. Both sides are under immense pressure to find common ground and prevent the country from plunging into financial uncertainty.
Amid the tension, the Biden administration maintains its stance that Republicans need to be more flexible. The president emphasized that Republicans need to move from their extreme position and hinted at the need for a compromise. McCarthy stressed the need for Biden to break away from what he calls the Democratic Party’s socialist wing.
Treasury Secretary Janet Yellen is painting a grim picture and has reiterated her warning of potential economic chaos. Her concerns echo a report by the White House Council of Economic Advisors, which suggests that a default could precipitate an economic downturn that mirrors the severity of the Great Recession, leading to the loss of 8 million jobs and causing a nearly 45% drop in stock market value.