U.S. President Joe Biden cautioned that congressional Republicans may do something “outrageous” to force the U.S. to default on its loans, as the negotiations between congressional Republicans and the White House over whether to raise the debt ceiling remain uncertain and a June 1 deadline to avert a default looms.
During a press conference after the G7 summit in Japan, Biden described congressional Republicans’ demands for spending cuts in exchange for raising the debt ceiling as “extreme,” though he said he is “willing to cut spending.”
“I can’t guarantee that they will not force a default by doing something outrageous,” Biden said at the press conference, referencing congressional Republicans who have not retreated in their requests for cuts to federal spending.
The president also said he couldn’t promise during meetings with fellow world leaders the U.S. would not default, a move that would have repercussions around the world, but he said earlier in the press conference the U.S. has “never defaulted on our debt and it never will.”
Biden also reiterated he was considering bypassing Congress and continuing to pay the nation’s bills by invoking an obscure clause in the 14th amendment that says the “validity of the public debt of the U.S.… shall not be questioned,” but noted potential legal challenges and a lack of time.
“So I’m assuming that we mean what we say and we’ll figure out a way to not have to default,” Biden said.
The Treasury has estimated the U.S. could become unable to pay its bills as early as June 1, triggering an economically catastrophic default.
