Obama insists he won't negotiate on the debt ceiling
as a matter of principle.
However, debt ceiling
breakdowns are unprecedented and are far riskier for the economy and markets.
He warned that lawmakers did not get to demand a ransom, and reiterated his position that he would only negotiate with Republicans once the debt ceiling
was raised and the government, now shuttered for a week, is opened.
On CNN's State of the Union, Treasury Secretary Jack Lew said: "Congress is playing with fire," adding that Obama would not negotiate until "Congress does its job" by reopening the government and raising the debt ceiling
But it's unclear whether GOP lawmakers, particularly those on the party's far right flank, were listening Wednesday when Bank of America CEO Brian Moynihan and Goldman Sachs CEO Lloyd Blankfein warned of the consequences of failing to raise the debt ceiling
and causing the United States to default on its debt for the first time in history.
That scenario, in which the shutdown would be tied to debt ceiling
negotiations, "could lead to a serious crisis" as the Oct.
"What I haven't been willing to negotiate, and I will not negotiate, is on the debt ceiling
," Obama said in an interview with the ABC News aired Sunday.
With an already weak global economic recovery, and the impact of the tax increases and spending cuts, coupled with political wrangling over the debt ceiling
, this is likely to present even more downside risks for the global economy in 2013, according to QNB Group.
Kay Bailey Hutchison and the rest of Congress set to vote on a deal that would raise the nation's debt ceiling
and avoid an unprecedented federal default, we asked those running to replace her how they would vote on the bill, which is expected to pass but has left partisans largely dissatisfied.
Immediately after the president addressed the nation, Boehner responded by saying he intends to continue pushing a short-term increase in the federal debt ceiling
, despite Obama's objection that such a move does not solve the problem.
issue weighed on the dollar and its exchange rate against the yen is likely to be swayed largely depending on developments in the talks going forward.
Synopsis: The exact words used by more than 700 Americans to explain their position either favoring or opposing an increase in the federal debt ceiling
provide a unique and rewarding insight into public opinion on this important policy issue.