As fears of a default on the world’s largest economy grow, US President Joe Biden has said the situation is not at the point where the 14th Amendment is needed to save the country from defaulting on its debt.
His comments indicate that the Biden administration has retained the power to demand the amendment if the country defaults on June 1.
Speaking in an interview with Joe Biden MSNBC Said: I haven’t reached there yet.
A polarized Congress doesn’t have much time left to raise the $31.4 trillion debt ceiling, with the Treasury Department warning it won’t be able to pay off its debt as soon as June 1.
If Congress fails to act, some legal experts say, the 80-year-old Biden has another option to avert the crisis: “Invoke the 14th Amendment to the U.S. Constitution to ensure that the U.S. can continue to pay their bills.”
The Fourth Amendment to the US Constitution, adopted after the Civil War of 1861-1865, notes that “the validity of the public debts of the United States shall not be questioned.”
But this clause has been largely ignored by the courts.
Experts have suggested that Biden could invoke the amendment to raise the debt ceiling on his own if Congress does not act. This will almost certainly lead to protracted legal wrangling, which could unsettle financial markets.
A person briefed on these discussions was quoted. Reuters As the saying goes: The White House and other administration officials have explored the possibility, but many have dismissed it as a last resort that is unlikely to survive a court challenge.
Top Republicans and Biden, along with other Democrats in Congress, will debate next week on Tuesday to try to end a three-month impasse on the federal debt ceiling and avert a crippling default before the end of the month.
Here are the positions maintained by both parties: Biden is calling on lawmakers to raise the federal government’s self-imposed borrowing limit without conditions, and Republican House Speaker Kevin McCarthy’s It is said that his chamber will not approve any deal that does not reduce the cost of solving the problem of the nation. A growing budget deficit