Biden warns of ‘chaos’ for U.S. economy if default follows debt-ceiling fight

President Joe Biden on Monday warned again of dire consequences for the U.S. economy if there’s a default on the federal debt, saying “there’s nothing that would create more chaos, more inflation and more damage to the American economy.” Speaking at Democratic National Committee headquarters, Biden said he would not cut Social Security or Medicare, following recent remarks by House Minority Leader Kevin McCarthy about entitlements. McCarthy — who is in line to become House speaker if Republicans win in the midterm elections — has suggested using the debt limit to force spending cuts but also said he wouldn’t “predetermine” anything when asked about entitlements. The U.S. is expected to hit its debt ceiling next year.