US Could Lose Up to 8 Million Jobs in Extended Default Scenario

The extended scenario of a US default could result in the loss of nearly 8 million jobs. This is stated in a report by the White House Council of Economic Advisers.

According to RIA Novosti, Moody's analysis, utilizing various macroeconomic models, reached the same conclusion.

With a net increase in the debt ceiling, job growth is expected to continue over the next few quarters, with an additional 900,000 jobs anticipated, according to this forecast. However, in a prolonged default scenario, job loss would amount to nearly 8 million.

On May 2, White House Press Secretary Karine Jean-Pierre stated that President Joe Biden does not plan to hold consultations with Representatives of Congress regarding issues to avoid default. She reminded that during the presidency of former US leader Donald Trump, the debt limit was raised three times.