White House Warns of Economic Recession

U.S. Vice President Kamala Harris and White House Chief Economic Advisor Lael Brainard said on Thursday that a default on U.S. debt would push the American economy into recession. Harris and Brainard urged Democratic activists during a conference call to connect with lawmakers to express their opposition to allowing the country to default on its debts, which could happen in less than two weeks. Harris used the call to keep the focus on the looming default while President Joe Biden is set to spend the next few days in Japan for the G7 summit. She stated, "Defaulting on the debt could lead to a recession." A White House official mentioned that negotiators from the White House and congressional Republicans met again at the Capitol to continue searching for common ground to raise the debt ceiling of $31.4 trillion, with plans to meet again tomorrow, Friday. Brainard, the director of the White House National Economic Council, indicated that the Biden negotiating team had been instructed not to agree to any Republican proposal that raises the debt ceiling while simultaneously stripping healthcare from Americans or pushing any of them into poverty. The U.S. Treasury Department confirmed last Monday that it expects to be able to pay government bills only until June 1 without raising the debt ceiling, increasing pressure on Republicans and the White House to reach an agreement in the coming days.