9/17, 4:29 PM (Source: TeleTrader)
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WH memo: Hitting debt ceiling may cause recession

White House issued a memo on Friday to state and local governments warning that the failure to lift the federal borrowing limit in the coming days could cause a recession and a halt on federal aid to critical services.

"Hitting the debt ceiling could cause a recession. Economic growth would falter, unemployment would rise, and the labor market could lose millions of jobs," the memo read.

Senate Majority Leader Chuck Schumer said he plans to raise the debt ceiling under regular order, which means it needs at least 10 votes from the Republican party to overcome a filibuster. Meanwhile, Senate Minority Leader Mitch McConnell shared the GOP will vote in unison to defeat any bill that would raise the nation's debt ceiling.

Breaking the News / LH