Obama: Default Could Bring Global Slowdown
Washington (CNN) — After weeks of near silence without any hint of a potential compromise between the Obama administration and congressional Republicans over raising the nation’s debt ceiling, the White House may be offering some conciliatory language that could help lead to a deal to prevent a potential default on October 17.
As recently as Friday, White House officials declined to specify any demand for the length of a deal to increase the nation’s debt ceiling.
Then on Monday, a White House official said it was up to Congress to decide how long the debt ceiling increase should last.
Economists warn of dire fiscal impacts from failing to raise what is called the debt ceiling, such as a reduced U.S. credit rating that would spike borrowing costs. The economic blow and questions about America’s fiscal fidelity could bring a global slowdown, Obama has warned.