President Biden
The US Chamber of Commerce, a pro-business trade group, is opposing the use of the 14th Amendment by progressive lawmakers to prevent a default on the US debt. In a letter to President Joe Biden, the Chamber’s chief policy officer, Neil Bradley, argued that invoking the 14th Amendment would be as economically calamitous as a failure to lift the debt limit in a timely manner. Bradley claimed that the legal uncertainty surrounding this approach would cause Treasury rates to spike, leading to increased borrowing costs for families and businesses. The Chamber emphasized that there is no alternative to reaching a bipartisan agreement to raise the debt limit.
The Chamber’s letter referred to a Thursday letter from Senators Bernie Sanders, Elizabeth Warren, and other Democrats, urging President Biden to exercise his authority under the 14th Amendment. However, experts have warned that such action could trigger a constitutional crisis, and Treasury Secretary Janet Yellen has expressed doubt about this approach.
The news of the impasse in debt ceiling negotiations between the White House and House Republicans caused US markets to turn negative. Chief economist Mark Zandi cautioned that if no deal is reached after the Memorial Day weekend, the markets could experience a significant decline reminiscent of the 2011 debt ceiling crisis.
Overall, the Chamber of Commerce opposes invoking the 14th Amendment, warning of the economic, financial, and legal turmoil it could cause. They argue for the necessity of a bipartisan agreement to raise the debt limit to prevent a default.
#DebtCeiling #EconomicCalamity #BipartisanAgreement”