The Hill News

Sen. Jeanne Shaheen (D-N.H.) warned the consequences of a U.S. default should Congress fail to pass deal to raise the debt ceiling by August 2nd could be devastating to the U.S. economy on MSNBC Saturday afternoon.

"The consequences are really catastrophic and it's hard to understand why we can't sit down in a room and everybody come to some sort of agreement," Shaheen said.

Shaheen said she shares the public's frustration with the current stalemate favors broad cuts to the budget, she but understands the time has come to set aside personal preferences and reach a compromise. She expressed hope Republicans would come to the same conclusion in time to avoid default.

"It's hard for me to understand how we can be at this point when most people who have looked at this issue understand the dire consequences that a default would have," Shaheen said, arguing a default by the U.S. would lead to higher interest rates not just for government but for mortgages, car payments, and credit cards.

Shaheen also repeated the Democrats' argument that any potential savings from budget cuts would be wiped out by the resulting increase in the cost of borrowing.