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White House Warns of Looming Economic Catastrophe

This is a warning to Congress to pass an increase in the debt ceiling

President Joe Biden's top aides and local officials nationwide pleaded with U.S. lawmakers on Friday to resolve a government debt showdown that they warned could spark an economic crisis.

Congress plans next week to consider legislation that would avoid a default ahead of an October deadline, when the Treasury Department estimates it will no longer be able to pay all of the country's bills.

The White House warned on Friday that a failure by the U.S. Congress to extend the debt limit could plunge the economy into a recession and lead the country to default on its payment obligations. A coalition of local elected officials, meanwhile, said a failure to resolve the issue could send ripple effects through credit markets and leave cities unable to fund healthcare and other services.

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