Delay in raising the US debt ceiling could reverse the fledgling recovery and trigger a new economic meltdown, US President Barack Obama said in a interview broadcast Tuesday.
“We could actually have a reprise of a financial crisis, if we play this too close to the line,” Obama told NBC television’s “Today Show” program.
“We’re going be working hard over the next month. My expectation is we’re going get it done in a sensible way. That’s what the American people expect.”
Obama and congressional Republicans have been engaged in heated wrangling over raising the debt ceiling, with the GOP demanding deep cuts in exchange for any deal to raise the spending limit.
The United States government is edging perilously close to an August 2nd date by which the federal government must increase its debt limit to borrow the money it needs to pay its bills.