Sen. Mike Braun, R-Ind., encourages both Republicans and Democrats to see through the smoke and mirrors within debt ceiling talks.
The ongoing negotiations between the Biden administration and Republicans in Washington to reach a deal on raising the federal government’s debt ceiling has left the nation dangerously close to potentially defaulting on paying its bills, causing the U.S. Chamber of Commerce to sound the alarm that a default would be disastrous for America’s economic backbone.
The organization warned this week that if a resolution is not reached by the early June deadline, “the repercussions could be devastating for small businesses,” pointing out the high likelihood of a recession, a worsening credit crunch due to surging interest rates, even higher inflation and a weaker dollar in the instance of default.
A closing sign posted in a small business door, Queens, New York. The U.S. Chamber of Commerce warned this week that a U.S. debt default would be “devastating” for American small businesses. ((Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images) / Getty Images)
“The negative consequences that would occur if the United States were to default on its debt cannot be overstated,” stated Neil Bradley, Executive Vice President of the Chamber. “We are increasingly concerned that a default on the federal government’s debt could happen due to the short timeframe and the growing risk of miscalculation.”
GOP SENATOR WARNS AMERICANS: ‘RETIREMENT IS NOW IN JEOPARDY’
Treasury Secretary Janet Yellen reiterated on Wednesday that default could happen as early as June 1, giving the White House and GOP lawmakers just days to reach an agreement on raising the debt limit amid a prolonged standoff.
US House Speaker Kevin McCarthy, a Republican from California, right, speaks to members of the media alongside Representative Patrick McHenry, a Republican from North Carolina, after a meeting with US President Joe Biden at the White House in Washing (Getty Images)
Republicans, who control the House, want spending cuts in exchange for raising the borrowing limit, while President Biden and his fellow Democrats, who control the Senate, prefer a “clean” debt ceiling bill without spending cuts.
DEBT CEILING TALKS WILL CONTINUE TO MAKE MARKETS ‘MORE VOLATILE’: DORY WILEY
Both sides are adamant that default is not an option, but with just one week left until the deadline, the pressure is mounting. Once a deal is reached, it will take some time to formalize it legislatively and get it through both the House and Senate before it can be signed by the president.
President Biden, during a meeting with House Speaker Kevin McCarthy (not pictured), in the Oval Office of the White House on May 22, 2023. (Photographer: Yuri Gripas/Abaca/Bloomberg via Getty Images / Getty Images)
Given the limited options, small businesses are urging the White House and lawmakers to come to an agreement, according to the Chamber.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The organization advises small business owners to contact their representatives in Congress to emphasize the importance of reaching a resolution and to prepare for potential economic changes.
FOX Business’ Megan Henney and FOX News’ Chad Pergram contributed to this report.
