President Obama on Thursday scolded a divided Congress for creating “manufactured” financial crises that damaged the U.S.’ credibility, then urged Congressional leaders to work together on fiscal policy that supports economic growth.
“Nothing has done more damage to the U.S.’ credibility,” the president said, “than the spectacle” of the budget stalemate that paralyzed the government for more than two weeks.
Earlier Thursday, the president signed into law a bill that reopened portions of the government shutdown since Oct. 1 and staved off a potential default by the U.S. The bitterly debated bill temporarily funds the government through Jan. 15 and suspends the debt limit through Feb. 7.
“Let’s be clear, there are no winners here,” Obama said in a speech to the American public early Thursday afternoon from the State Dining Room in the White House,
Obama said the economic implications of the standoff are broadly negative, and that even the threat of default could make it more expensive for the U.S. to borrow in the future, a situation that runs counter to the reason many Republican lawmakers opposed raising the debt ceiling in the first place.
He said the administration’s foreign diplomats have told him the U.S. standing has been hurt abroad by the repeated fiscal crises brought about by a deeply divided Congress.
The president also cited ratings firm Fitch Ratings justification – the “repeated brinksmanship” of U.S. fiscal policy makers — for warning that it may cut the U.S. credit rating earlier this week.
“The good news is we’ll bounce back from this,” Obama said.