Lael Brainard: The US has never defaulted; Congress has acted 78 times

Lael Brainard: The US has never defaulted; Congress has acted 78 times


Lael BrainardDirector of National Economic Council, has reportedly warned that Congress is failing to stop it default on government debtit would be disastrous but also expressed confidence in averting the crisis, saying the US would always pay its bills.

“…so the staff is very dedicated. I would describe the commitment as serious and constructive,” she says told CBS News added that a default would “result in higher borrowing costs for autos, mortgages, small businesses and even the US government.”

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Brainard cited the story surrounding the debt ceiling and stressed the fact that the Payment defaults could always be averted.

“Congress has acted 78 consecutive times to avert a default to prevent a default, and we know they did it. Under the last government they certainly did it three times. So we expect that Congress will do what is necessary, even if it is.” “We continue to have parallel discussions on the budget, which is a normal thing that Congress has to do every year,” she said.

President Joe Biden He reportedly said he expects to meet with congressional leaders on Tuesday Discussions on the debt crisis. A meeting with the President was previously scheduled Speaker of the House Kevin McCarthy and senior congressional leaders on Friday, but the meeting was postponed.

“…America is not a dead nation. We pay our bills. Congress has always acted and they know how to do it and they have the capacity to do it in a timely manner,” Brainard said.

White House Officials reportedly conceded last week that if a deal is to be reached, they will have to accept some spending cuts or severe restrictions on future spending, while insisting they must keep Biden’s signature climate legislation adopted by all parties last year.

“…we’re also at the staff level and we’re seeing productive discussions around the budget, separate but in parallel, and those discussions are important too. And of course that’s something that…


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