washington
\nAs the fears of default loom large on the world\u2019s largest economy, US President Joe Biden has said that the circumstances are not at the point where the 14th Amendment needed to be invoked to avoid the country defaulting on its loans.
\nIt is implied from his comments that the Biden Administration has retained the option to invoke the amendment were the country to go into default on June 1.
\nJoe Biden while talking in an interview with MSNBC said: \u201cI\u2019ve not gotten there yet.\u201d
\nThere is not much time left for the polarized Congress to raise the debt ceiling of $31.4 trillion with the warning coming from the Treasury Department that it could not be able to pay its loans back as soon as June 1.
\nIf Congress fails to act, some legal experts say, Biden, 80, has another option to avert a crisis: \u201cInvoke the 14th Amendment to the US Constitution to ensure the United States can continue to pay its bills.\u201d
\nThe Fourth Amendment of the US Constitution adopted after the 1861-1865 Civil War, notes that the \u201cvalidity of the public debt of the United States … shall not be questioned.\u201d
\nBut the clause has been largely unaddressed by the courts.
\nExperts have recommended that Biden could invoke this amendment to raise the debt ceiling on his own if Congress does not act. That would almost certainly lead to prolonged legal wrangling, which could unsettle financial markets
\nA person briefed on those discussions was quoted by Reuters as saying: White House and other administration officials have examined the possibility but many have dismissed it as a last-ditch solution unlikely to survive a court challenge.
\nTop Republicans and Biden alongside other Democrats from Congress will discuss Tuesday next week to try to put an end to the three-month standoff over the federal debt ceiling and prevent a crippling default before the end of the month.
\nThe positions maintained by both sides are: Biden is calling on lawmakers to raise the federal government\u2019s self-imposed borrowing limit without conditions, and Republican House Speaker Kevin McCarthy says his chamber will not approve any deal that doesn\u2019t cut spending to address the nation\u2019s growing budget deficit. <\/p>\n","protected":false},"excerpt":{"rendered":"
washington As the fears of default loom large on the world\u2019s largest economy, US President Joe Biden has said that the circumstances are not at the point where the 14th Amendment needed to be invoked to avoid the country defaulting on its loans. It is implied from his comments that the Biden Administration has retained […]<\/p>\n","protected":false},"author":2,"featured_media":329806,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-329789","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n