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- Six former Democratic and GOP treasury secretaries are urging Congress to renew the US' ability to pay its bills.
- "Even a short-lived default could threaten economic growth," they wrote in a letter.
- McConnell is standing firm on his view that Democrats have to raise the debt ceiling on their own.
- See more stories on Insider's business page.
A group of former Democratic and GOP treasury secretaries are urging Congress to immediately raise or suspend the limit on how much debt the US can pay back, as Republicans refuse to cooperate with Democrats and alarm mounts over the potential consequences of a federal default.
In a letter sent to Congressional leaders, the group warned that failure to address the debt limit and a default could cause "serious economic and national security harm."
"Even a short-lived default could threaten economic growth," they wrote. "It creates the risk of roiling markets, and of sapping economic confidence, and it would prevent Americans receiving vital services."
The former treasury secretaries added that brinkmanship was "detrimental."
The roster included Robert Rubin, who served in the Clinton administration; Henry Paulson, a treasury secretary during the Bush administration; W. Michael Blumenthal, who served in the Carter administration; Lawrence Summers, a Clinton-era treasury secretary; and Jacob Lew, an Obama-era treasury secretary; and Timothy Geithner, a treasury secretary during President Barack Obama's first term.
The letter reflects increasing pressure on Congress to resolve the debt ceiling standoff, particularly Republicans. On Wednesday, Senate Minority Leader Mitch McConnell reaffirmed what he's said since July: Senate Republicans will not raise the debt limit and Democrats must do it alone.
"My advice to this Democratic government, the president, the House and Senate: don't play Russian roulette with our economy," he said at a Wednesday press conference. "Step up and raise the debt ceiling and cover all that you've been engaged in all year long."
McConnell is urging Democrats to lift the borrowing cap on a party-line basis using reconciliation. It's the same procedure Democrats are employing to secure the passage of a $3.5 trillion social pending plan.
Democrats are insisting Republicans must raise it alongside them, noting the national debt grew $8 trillion during the Trump administration. The GOP also raised it three times under President Donald Trump.
Lifting the debt limit doesn't authorize new spending, it only gives the green light for the federal government to pay back what it already owes.