President Joe Biden warned Tuesday that debt default could cost the nation 8 million jobs and destroy the economy.
The standoff continues between House Republicans and the White House on debt ceiling talks.
"We've seen bigger jobs gains in two years than any president has in four," Biden said on his presidential Twitter account ahead of his meeting at the White House with congressional leaders. "But if House Republicans push us into default, 8 million jobs could be lost — destroying our economic progress. It's clear: Default is not an option."
The president's numbers come from a report issued earlier this month by the White House Council of Economic Advisers, which said that an extended breach of the national borrowing limit could wipe out more than 8 million jobs while causing severe economic damage.
The advisers compared a debt ceiling breach to the impact of the 2008 Great Recession and said a protracted standoff lasting about three months would bring a 6% contraction in the economy.
Meanwhile, Biden, House Speaker Kevin McCarthy, R-Calif., and congressional leaders will be meeting in the White House Tuesday afternoon, one day before the president heads to the G-7 summit in Hiroshima, Japan, reports The New York Times.
The meeting comes one day after Treasury Secretary Janet Yellen said the country could run out of money for its bills by June 1 if Congress doesn't raise or suspend the debt limit.
House Republicans are calling for cuts to federal spending before the debt ceiling is lifted, but Biden insists that it is the responsibility of Congress to raise the limit and that it must be done without any stipulations on spending.
McCarthy said Monday he has doubts that an agreement can be reached, saying he knows the negotiations are not in a good place.
However, he also said he wants to negotiate some of the provisions House Republicans passed in a bill to raise the debt limit, including spending caps, domestic energy project changes, clawing back spending allocated for COVID-19 relief programs, and instituting work requirements for social programs like food stamps.
Senate Minority Leader Mitch McConnell, R-Ky., Senate Majority Leader Chuck Schumer, D-N.Y., and House Minority Leader Hakeem Jeffries, D-N.Y., will join McCarthy and Biden in Tuesday's negotiations.
Schumer also stressed Monday that default is not an option in the discussions, set to start at 3 p.m. ET, as "its consequences are too damaging, too severe. It must be taken off the table."
Meanwhile, Yellen, who will speak at the Independent Community Bankers of America summit Tuesday, plans to warn that the standoff is already affecting financial markets.
"We are already seeing the impacts of brinkmanship," she plans to say, according to excerpts from her prepared remarks.
On Monday, Yellen warned lawmakers that the Treasury Department could run out of cash by June 1, and plans to tell the summit Tuesday that businesses are "having to spend your time planning around the potential risk of U.S. default, instead of thinking about longer-term investments that will grow your enterprises and boost the economy."
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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