May 14 (UPI) — House Foreign Affairs Committee Chairman Rep. Michael McCaul, R-Texas, said Sunday he does not think the United States will default on its debt.
Appearing on ABC’s “This Week,” McCaul said he was optimistic the nation would raise the debt ceiling by June 1, noting that defaulting would embolden the country’s adversaries.
“Our adversaries look at this very closely. They look at when we’re divided. … I think they would love nothing more, particularly China, to see us default in our full faith and credit under the Constitution,” McCaul said. “I think defaulting is not the right path to go down.”
McCaul said he agreed with Joint Chiefs of Staff Chairman Gen. Mark Milley, who said that defaulting on the debt would embolden China.
“And I agree with the chairman of the Joint Chiefs that our adversaries are looking at this, and we have to be very careful what we do. I’m optimistic we will get to a place where we can avoid that situation,” he added.
McCaul and other Republicans have pressed for spending cuts before agreeing to raise the debt ceiling.
U.S. Treasury Secretary Janet Yellen has also warned of the consequences of U.S. default.
“America should never default. It would be tremendously, economically and financially damaging,” she said on Thursday. “The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable.”
On Wednesday, former President Donald Trump said in a televised event that he believes the United States should default on its debt if the Biden administration does not agree to the Republicans’ deep spending cuts.