It found that if the House GOP's plan were signed into law, the attached spending cuts could lead to a loss of 780,000 jobs. Moody's Analytics has estimated that even a short-term default could lead to a loss of 2.6 million jobs. "That makes it more likely that whatever downturn we suffer is going to be more severe and more prolonged. "If we go into recession, we can't count on fiscal policy to help us out here," said Mark Zandi, the chief economist at Moody's Analytics. A White House official previously told Insider that Biden would stress that Congress "must take action to avoid default without conditions." On Tuesday, the president is set to meet with House Speaker Kevin McCarthy, Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, and House Minority Leader Hakeem Jeffries. The Joint Economic Committee has estimated that a default could cost Americans $20,000 in retirement savings as well as increase mortgage payments and private student-loan payments. The clock is ticking, and every day without an agreement to raise the debt ceiling brings millions of Americans closer to a catastrophic - and unprecedented - default on the nation's debt. Republican lawmakers have insisted that reducing federal spending is necessary to control inflation, even as data has suggested that inflation has cooled throughout the pandemic. But alternative routes of averting a crisis - like minting and cashing a trillion-dollar coin or using a constitutional amendment - haven't caught traction. Democrats have said that plan is dead on arrival in the Senate. Republicans want to use the debt ceiling as an avenue to cut spending House Republicans narrowly passed a bill that would slash housing and environmental programs, strengthen work requirements for accessing welfare, and ban student-loan forgiveness. The White House has said that breaching the debt ceiling could lead to a recession on par with the Great Recession - but unlike with the 2008 downturn, this time the government wouldn't have any money to help soften the blow. Treasury Secretary Janet Yellen has said the country could run out of money as soon as June 1. When it comes to raising the debt ceiling and averting an entirely preventable economic catastrophe, the US is on a road to nowhere - and time isn't on Congress's side. Account icon An icon in the shape of a person's head and shoulders.
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