(Adds comments by Biden and by U.S. House speaker, adds
background)
By Jeff Mason and Andrea Shalal
WASHINGTON, May 1 (Reuters) - U.S. President Joe Biden
on Monday urged House of Representatives Speaker Kevin McCarthy
to take the potential for an unprecedented U.S. debt default off
the table, warning that it would result in skyrocketing credit
card and mortgage rates.
"America is not a deadbeat nation. We have never, ever
failed to meet the debt," Biden told a small business event at
the White House.
He said the threat of default by some Republicans in
Congress was "totally irresponsible" and that it was essential
to take that threat "off the table."
"It would lead to higher interest rates, higher credit card
rates, mortgage rates would skyrocket," Biden said.
"The most immediate thing we can do is ensure continued
reliance of our economy and the financial system. The most
important thing we have to do in that regard is to make sure the
threat by the speaker of the House to default on the national
debt is off the table," he added.
The U.S. House of Representatives on Wednesday narrowly
passed a bill to raise the government's $31.4 trillion debt
ceiling that includes sweeping spending cuts over the next
decade. While the bill is not expected to win Senate approval,
McCarthy hopes to lure Biden into negotiations on cutting
spending, even as the White House and congressional Democrats
insist on a debt limit increase with no strings attached.
The U.S. Treasury Department could run out of ways to pay
its bills in a matter of weeks if Congress fails to act, and
financial markets are already flashing warning signs. A 2011
standoff led to a downgrade of the government's credit rating,
which pushed borrowing costs higher and hammered investments.
McCarthy, speaking during a visit to Jerusalem, said he was
concerned about the debt ceiling, but that the only way to solve
the problem was for Biden to negotiate.
"We are going to have to come together to solve it," he
said. "I'm looking forward to the president changing his mind
and negotiating with us."
(Reporting by Jeff Mason, Steve Holland and Andrea Shalal in
Washington and Emily Rose in Jerusalem
Editing by Mark Porter and Matthew Lewis)
steve.holland.reuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.