Short-term debt ceiling hike ‘not a fix’: White House economic adviser

A top economic advisor to President Biden poured cold water on the idea that the White House could be looking for a short term debt ceiling extension on Sunday, saying that outcome was “not a fix.”

“Short-term is not a fix,” White House National Economic Council Director Lael Brainard said on CBS’s “Face The Nation.” “It’s just really important to take default, and address it and Congress has the tools to do that.”

Brainard’s comments come as the White House and congressional Republicans work toward a deal on raising the debt ceiling. The two sides have been at loggerheads for months. 

While House Republicans have insisted that Democrats agree to spending cuts before raising the debt ceiling, Biden and his party have said that they will not negotiate on such cuts.

Republicans narrowly passed a bill in the House last month that would both raise the borrowing limit and slash spending.

Treasury Secretary Janet Yellen told lawmakers earlier this month that the U.S. could be unable to continue to pay its bills by as early as June 1, a deadline that was much sooner than officials initially expected.

Brainard said he was confident that as default looms in the distance, Congress would deal with raising the debt ceiling.

“Our expectation is that Congress will do what is necessary, even as we continue to have parallel discussions on the budget, which is a normal thing that Congress needs to do every year,” Brainard said. “I’m sure Congress will see its way clear to making sure that happens.”