The Obama administration continues to lobby Congress for an increase to the debt limit ahead of an August 2 deadline, when the government is expected to reach its $14.3 trillion borrowing limit. White House officials say they intend to convince corporate executives to pressure House Republicans to approve an increase to the debt cap. On Tuesday, Federal Reserve Chair Ben Bernanke warned of dire consequences if Congress fails to act.

Federal Reserve Chair Ben Bernanke: “Failing to raise the debt ceiling in a timely way would be self-defeating, if the objective is to chart a course toward a better fiscal situation for our nation. The current level of the debt and near-term borrowing needs reflect spending and revenue choices that have already been approved by the current and previous Congress and administration of both political parties. Failing to raise the debt limit would require the federal government to delay or renege on payments for obligations already entered into. In particular, even a short suspension of payments on principal or interest on the Treasury’s debt obligations would cause severe disruptions in financial markets.”

Vice President Joe Biden continues to hold bipartisan meetings on Capitol Hill in a bid to reach a deal. Republicans have been pushing for steep spending cuts in return for raising the debt ceiling.