Former Minister of Finance Lawrence Sommer allegedly said The probability that the US government could experience a technical debt default due to debt ceiling legislation was around 2% to 3%.

What happened: Summers said, “I think there’s a 2% or 3% chance of a technical failure related to debt-limit legislation over the next few months, and if it happens, it’ll be fixed pretty quickly.” According to a Reuters report, Summers said so on a Morningstar investment conference in Chicago.

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The former Treasury Secretary’s comments followed a standoff between Republicans and Democrats over raising the borrowing limit that was beginning to affect money markets. Incoming tax receipts recently indicated that the deadline to raise the $31.4 trillion credit limit could be reached earlier than expected, the report said.

Summers also said the likelihood of a default due to bankruptcy is much lower.

“I think the likelihood of us defaulting in terms of default and not being able to get people who hold bonds paid for a period of time is within the next 10 years, assuming there isn’t a major war certainly below 2%. ” he said.

Poll: The House of RepresentativesOn Wednesday, almost passed a bill to raise the debt ceiling, which includes significant spending cuts over the next decade, according to a Reuters report.

However, the bill is not expected to pass the Senate and the President Joe Biden would veto it. “We did our job,” said the Speaker of the House of Representatives Kevin McCarthy told reporters right after the vote, the report said.

White House Press Secretary Karine Jean Pierre said Biden would not sign the spending cuts. “President Biden will never force the middle class and working class families to shoulder the burden of tax cuts for the wealthiest like this bill does,” she said in a statement. “The President has made it clear that this law has no chance of becoming law,” added Jean-Pierre.

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