president Joe Biden addressed the debt ceiling crisis on Wednesday, declaring that Republicans are “holding the economy hostage.” risk of US debt default.

They want “massive cuts in essential programs for millions of working middle-class Americans” and “21 million people are at risk of losing Medicaid,” Biden told supporters while speaking at Westchester Community College in Valhalla, NY

The President, citing a Moody’s study, warned that eight million people risk losing their jobs if the US fails to meet its commitments. He added that America’s international reputation would be extremely damaged.

“This is a manufactured crisis. America is not a dead nation. There is no question that the US will pay its bills and state that defaulting is not an option,” the president said.

Biden explained that the national debt had increased by 40% in the four years leading up to his presidency, adding that Trump’s tax cuts were skewed in favor of the wealthy and big companies.

The speech came a day after Biden had a “productive” meeting with key congressional leaders despite failing to reach a bipartisan agreement on raising the debt ceiling.

earlier this week, US Treasury Secretary Yellen warned that the government has just weeks before running out of money, with the June 1 deadline approaching.

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Market reaction:

The SPDR S&P 500 ETF Trust SPY rose 0.5% during Biden’s speech, trimming losses for the session.

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