President Biden said on Saturday at the Group of Seven (G7) summit that he thinks the United States will prevent a default as the deadline for lawmakers to reach a deal nears.
Biden said at a press conference in Hiroshima, Japan, that he is “not at all” concerned about the ongoing talks to increase the debt ceiling before the limit is hit. He said the process has stages, and one meeting might not succeed, but later ones do.
“I still think we’ll be able to avoid a default and we’ll get something good done,” he said.
Biden’s comments come after national security adviser Jake Sullivan said earlier in the day, local time, that Biden “showed confidence” to other world leaders at the summit that the U.S. would not default.
“Here at the G7, you know, countries want to know how these talks are going to unfold and the president has shown confidence that he thinks that we can achieve an outcome that we do avoid default,” Sullivan said.
The G7 is a meeting of the world’s most advanced democratic economies.
Treasury Secretary Janet Yellen has said the U.S. could default on its debts as early as June 1 if an agreement to raise the ceiling is not passed.
Republicans have asked for extensive spending cuts in return for voting to raise the debt limit, while Biden and Democrats have wanted to reduce cuts linked to the debt ceiling and pass something more like a clean bill to raise the limit by itself. Biden has said other issues should be dealt with separately.
Republican negotiators temporarily stopped the talks on Friday, blaming the White House for being “unreasonable” and not willing to agree to GOP requests on spending cuts. The talks continued Friday evening for the negotiators to have what the leading Republican negotiator called a “honest discussion” about “what’s reasonable and acceptable.”
Biden has cautioned that a default could have serious consequences that would shock the country and the world,