Biden advocates for ‘Republican obstruction’ leading to risk of debt default as he summons business leaders and CEOs

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“The President will also reiterate the cost of any delay – with each day of Republican obstruction and political games increasing the risk that even a narrowly avoided default will cause more costs to middle-class families with higher interest rates. high on auto and home loans, as well as credit cards, ”said a White House official.

The president is expected to meet with key banking, finance and other industry leaders at the White House on Wednesday as he steps up the campaign of public pressure to raise the country’s debt limit in a bipartisan fashion as Republicans continue to block efforts to do so. Democrats are able to raise the debt ceiling on their own without Republican votes, but would have to use the lengthy reconciliation process to do so. Democratic House and Senate leaders have said they are unwilling to use this process and instead seek Republicans to cooperate to pay the country’s bills.

Treasury Secretary Janet Yellen, who will be in attendance on Wednesday, said last month the country would be strapped for cash to pay its bills on October 18, leaving the United States facing a payment default for the first time. of their history.

On Tuesday, Biden said it was a “real possibility” that Senate Democrats would allow a one-time waiver of Senate filibuster rules to settle the debt ceiling, but he is not. not clear whether Democrats would have enough votes in their own party for the rule change. .
RELATED: “Financial Armageddon”. What’s at stake if the debt ceiling is not raised

“The President will detail the Republican obstruction that got us to this point, with the GOP refusing to do the right thing by fulfilling its bipartisan responsibility to tackle the debt limit – even after adding $ 8 trillion dollars under the previous administration, ”the official said. added. “Now Republicans refuse to step aside and let Democrats go it alone and remove this cloud over our economy, and have instead voted in favor of default, filibuster and blockade.”

Meeting with business leaders and CEOs from major financial institutions and other industries at the White House on Wednesday afternoon will be another opportunity for Biden to make his point on the debt ceiling as the officials have warned of the dire economic consequences of not raising the country’s debt ceiling. .

The meeting will include executives from major banks, such as Bank of America CEO Brian Moynihan and JPMorgan Chase CEO Jamie Dimon. Also in attendance will be leaders from the housing, business, technology and defense sectors, along with AARP CEO – Jo Ann Jenkins – whose organization represents millions of Americans whose retirement benefits Social Security and Medicare would be threatened if there was a default, the official noted. Some of the leaders are expected to attend virtually.

The full guest list includes Dimon; Moynihan; Jenkins, Jane Fraser, CEO of Citi; Greg Hayes, CEO of Raytheon; Charlie Opser, president of the National Association of Realtors; Adena Friedman, President and CEO of Nasqaq; Punit Renjen, Global CEO of Deloitte; and Pat Gelsinger, CEO of Intel.

Yellen, Senior White House Advisor Cedric Richmond and Commerce Secretary Gina Raimondo will also be in attendance.

“These leaders represent some of America’s best-known companies and industries, and they understand firsthand that a default would be economically devastating – risking millions of jobs and plunging our country into recession, and causing harm. sustaining America’s economic strength by threatening the dollar’s status as the currency the world relies on and lowering the credit rating of the United States, ”the official said.

Earlier this week, Biden told reporters he couldn’t guarantee the debt ceiling would be raised.

“No, I can’t – it depends on Mitch McConnell.… I can’t believe that would be the end result, because the consequences are so dire. I don’t believe it, but can I guarantee it? , I would, but I can’t, ”Biden said.

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