Tuesday, May 5, 2015Tuesday, May 5, 2015

Obama says refusal to lift debt ceiling would hurt economy

Published on Jan 15, 2013 1:02 AM

WASHINGTON (REUTERS) - President Barack Obama warned Congress on Monday that a refusal to raise the US debt ceiling next month would trigger economic chaos.

Mr Obama, at a news conference, said the US economy was poised for a good year as long as Washington politics did not interfere.

He said a Republican refusal to lift the debt ceiling could lead the United States into a debt default, which would prevent the US government from being able to provide Social Security benefits to some seniors and possibly tip the economy into recession.

"It would be a self-inflicted wound on the economy," Mr Obama said.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!