Lael Brainard Hopeful About Resolution Of Debt Ceiling Crisis: 'Congress Has Acted 78 Times In A Row To Avert Default'

Lael Brainard, Director of the National Economic Council, has reportedly warned that if Congress fails to prevent a default on national debt, it would be catastrophic but also expressed confidence about averting the crisis saying the U.S. always pays its bills.

"…so the staff is very engaged. I would characterize the engagement as serious, as constructive," she told CBS News while adding that if there is a default, it would "lead to higher borrowing costs for cars, for mortgages, for small businesses, even for the U.S. government."

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Brainard cited history surrounding the debt ceiling and highlighted the fact that the default has always been averted.

"Congress has acted 78 times in a row to avert default, to prevent default, and we know they have done it. They certainly did it three times under the last administration. So 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," she said.

President Joe Biden reportedly has said that he expects to meet with congressional leaders on Tuesday for talks on the debt ceiling crisis. The President was earlier set to meet with House Speaker Kevin McCarthy and senior Congressional leaders on Friday but the meeting was postponed.

"…America isn’t a deadbeat nation. We do pay our bills. Congress has always acted and they know how to do it and they have the capacity to do it in a timely manner," Brainard stated.

White House officials had reportedly acknowledged last week they must accept some spending cuts or strict limits on future spending if a deal is to be done while insisting they must preserve Biden’s signature climate legislation that passed along party lines last year.

"…we also are at the staff level, seeing productive discussions around the budget, separately, but in parallel, and those discussions are also important. And of course, that’s something that Congress wrestles with every year, and so our hope is that those conversations also continue and- and arrive at a constructive place," Brainard said.

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