US President Joe Biden says a default on the country's debt would push the United States into recession and have a devastating effect on the global economy. He sought to increase pressure on Republicans to reach a deal to raise the nation's debt ceiling.

Biden spoke Wednesday at Westchester Community College in Valhalla, New York.

"If we default on our debt, the whole world will be in trouble."

Biden painted an unprecedented grim picture of the consequences of a default, which he said would hit Americans' wallets and weaken the United States' standing in the world.

"Interest rates are higher on credit cards, auto loans and mortgages. Social Security, Medicare, our military and veterans' payments could all be delayed. Our economy will go into recession. Our international reputation will be seriously damaged. We shouldn't even be talking about this situation."

Biden's comments came a day after a meeting with congressional leaders that, by all accounts, made little progress toward agreement on raising the debt ceiling. The White House has said it will only accept a "clean" debt-ceiling increase with no strings attached, although Biden is open to separate negotiations on fiscal 2024 budget levels. Tuesday was the first of just seven days that House and Senate leaders and Mr. Biden will be in Washington in May, giving the two sides a short window to negotiate a deal. Mr. Biden said he might cancel his trip to the Group of Seven leaders' summit in Japan next week if the talks enter their final stages.

The economy will be a key factor in Biden's re-election hopes as he grapples with persistent inflation, a regional banking crisis and the risk of a recession. A historic default would only exacerbate these problems.

Biden told reporters on Wednesday that a short-term increase in the federal government's borrowing limit was not the only option to avoid a default in three weeks. Mr. Biden said he had not received an update on the debt ceiling negotiations, which are scheduled for Wednesday between White House staff and aides to congressional leaders. U.S. Senate Republican Leader Mitch McConnell warned on Tuesday that unilateral action by the White House on the debt ceiling without congressional approval was not an option.

But Biden said Republicans should cooperate unconditionally to avoid a debt default. Biden said the Republican debt ceiling bill is "effectively holding the economy hostage" and would put 21 million people at risk of losing Medicaid.

Treasury Secretary Janet Yellen has said the U.S. could run out of cash needed to pay its debts as early as June 1. With the window for negotiating a deal to avoid an unprecedented default closing, markets are already showing signs of anxiety about a potential default. A US default could cause deep and lasting damage to markets.

Securities and Exchange Commission Chairman Gary Gensler warned on Wednesday that a failure by Democrats and Republicans to reach a deal to raise the U.S. debt ceiling would affect trading, companies' ability to raise capital and investors. Mr Gensler, a Democrat, said the impasse had affected short-term US Treasury bills. Speaking at a conference hosted by the International Swaps and Derivatives Association in Chicago, he said:

"If the US Treasury, as the issuer, does default, it would have a very significant and unpredictable impact on investors, issuers and markets, and the impact could be long-lasting." It would make the Whirlwind roller coaster at the 1933 Chicago World's Fair look like a child's ride."