Less than two months after averting a government default, President Joe Biden has formed a special working group with the task of seeking solutions to avoid similar crises in the future.
The Debt Ceiling Working Group
The newly established Debt Ceiling Working Group, led by White House Counsel Stuart Delery and National Economic Council Director Lael Brainard, will include key officials such as Treasury Secretary Janet Yellen, Attorney General Merrick Garland, and the heads of the Office of Management and Budget and Council of Economic Advisers. Notably, no prominent Republican officials were named to the group.
Analyzing the Harmful Effects of Debt-Ceiling Brinkmanship
The primary objective of this working group is to thoroughly examine the adverse economic and financial consequences associated with debt-ceiling brinkmanship. Additionally, they will study the lessons learned from previous experiences and explore various legal questions surrounding the debt ceiling. The group will also investigate Constitution-based measures that Congress could potentially take to eliminate the risk of default altogether.
Protecting the Full Faith and Credit of the United States
Following the resolution of the recent debt-ceiling crisis, the White House emphasizes the necessity to explore all available legal and policy options to prevent Congress from ever again endangering the full faith and credit of the United States. This proactive approach aims to ensure that such situations do not become a recurring issue.
Previous Resolution and Bipartisan Cooperation
In early June, President Biden signed bipartisan legislation that successfully raised the debt ceiling and implemented spending cuts. This action concluded a prolonged standoff with House Republicans and prevented a disastrous default that could have severely impacted the economy. Treasury Secretary Janet Yellen later emphasized to Congress that this should not become a normalized practice in Washington.
Future Steps
The working group plans to kick off its efforts by consulting with legal scholars and economic experts. Furthermore, they will engage with additional experts and members of Congress in future meetings, indicating a comprehensive and inclusive approach to finding effective solutions.
