House Democrats announced Wednesday that they would hold an event on Thursday to discuss the potential impact on the U.S. economy if the nation defaults on its debt obligations early next month.
U.S. Treasury Secretary Timothy F. Geithner has set an Aug. 2 deadline for Congress to raise the nation’s $ 14.3 trillion legal borrowing limit before the United States defaults on its debt.
Negotiations between congressional Republicans and the White House and congressional Democrats over raising the limit as part of a debt reduction package have stalled on the issues of taxes and spending cuts. President Obama has invited congressional leaders to meet with him Thursday at the White House to try to break the impasse and move forward on crafting a deal.
The Democrats’ event, organized by House Minority Leader Nancy Pelosi (D-Calif.), is to examine how a default would affect job creation and the economy as a whole.
Among those expected to speak at the event are Bruce Bartlett, former adviser to Presidents Ronald Reagan and George H.W. Bush; Alan Blinder a former vice chairman of the Federal Reserve; and Heather Boushey, an economist at the Center for American Progress.