McConnell: US will never default on its debts

Senate Minority Leader Mitch McConnell (R-Kentucky) said Thursday that he is confident the US will never default on its debt and that he is not concerned that a financial crisis could be on the horizon.

McConnell told reporters in his home state that while pushing to raise the debt ceiling is “always a pretty contentious endeavor,” he believes lawmakers can get it done before the Treasury exhausts its “emergency measures” in June.

“No, I wouldn’t worry about a financial crisis,” McConnell told a group of reporters after an event at the University of Louisville on disaster relief funding.

“At the end of the day, I think it’s important to remember that America should never default on its debt. This has never happened and never will,” he said. “We will end up with some kind of negotiation with the administration about under what circumstances or conditions the debt ceiling will be raised.”

The comments come hours after Treasury Secretary Janet Yellen wrote in a letter to congressional leaders that the department will now resort to “extraordinary measures” to ensure the US does not default on debt payments. U.S. debt topped $31.4 trillion this week, more than the total approved by lawmakers over a year ago.

Yellen told leaders on Thursday that a “debt suspension period” would extend until June 5, though no exact date was given to reach a deal.

McConnell will play a critical role in the negotiations as a public battle breaks out between the White House and Republicans in the House of Representatives. The White House and leading Democrats say passage of a net debt ceiling bill is non-negotiable, while Speaker Kevin McCarthy (R-CA) has said in recent days that any increase in the debt ceiling must include spending cuts and called for negotiations with President Biden on the topic.

McCarthy did not specify what cuts he wants to include in any deal, although he has voiced support for cuts in defense spending in recent days.

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The White House on Tuesday criticized the GOP leader and urged him to publicize a deal he made with conservative members of the House of Representatives to win their support in the presidential race earlier this month.

When asked about his level of confidence in McCarthy, McConnell said he thought the California Republican “could do it”.

“Of course it was quite an adventure to watch him get there, but I think things will settle down in the Chamber and he will be fine,” McConnell added.

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