White House Warns of Millions of Job Losses, ‘Severe Damage’ to Economy If US Defaults on Debt

President Joe Biden speaks about "building on the small business boom" during National Small Business Week in the Rose Garden at the White House in Washington on May 1, 2023. Madalina Vasiliu/The Epoch Times

A continued breach of the U.S. debt ceiling could result in “significant disruptions” to financial markets and “severe damage” to the economy, including more than 8 million job losses, the White House has warned.

In a report published on May 3, the White House Council of Economic Advisers stressed that a historic U.S. default on its debt obligations—referred to as the “X-date”—is fast approaching, and such a move would see the economy “quickly shift into reverse.”