Obama Says If U.S. Defaults, Consequences Will Be ‘Significant’

June 29 (Bloomberg) -- President Barack Obama said the consequences of the U.S. defaulting if Congress doesn’t raise the nation’s debt ceiling will be “significant” and unpredictable.

Aug. 2 is a “hard deadline” for when the U.S. will no longer to meet all its debt obligations, Obama said at a White House news conference. “We don’t know how capital markets will react” if the deadline passes without an agreement to raise the $14.3 trillion limit.

“The consequences for the U.S. economy will be significant,” he said. “Job growth will be further stymied, further hampered.”

Republicans and Democrats are negotiating a deal for about $2 trillion in spending cuts over 10 years to clear the way for an agreement to raise the nation’s borrowing limit.

To contact the reporter on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net

To contact the editor responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net