US President Barack Obama

US President Barack Obama has warned the Republicans that if an agreement to raise the debt limit is not made soon, there is a risk of a second economic recession.

“Our credit could be downgraded, interest rates could go drastically up, and it could cause a whole new spiral into a second recession — or worse,” Obama said. “This is something that we shouldn’t be toying with.”

Obama’s comment comes a day before a White House meeting between the Democratic-led Senate and Republican-held House of Representatives is to take place to discuss the issue, AFP reported.

Republican Senate Minority Leader Mitch McConnell has so far said he will block any effort to raise taxes, saying it is “ludicrous” to believe such a move would avert Obama’s claimed “global disasters.”

“Until now, the president’s proposals have been inadequate and, frankly, indefensible,” McConnell said.

However, he added that they are “eager to meet with the president to see if he’s really willing to do something big here for the country.”

The US officially hit its USD 14.3 trillion debt ceiling on May 16, up from USD 10.6 trillion when Obama took office in 2009.

It has been said that the US government could potentially default on its debts on August 2, if the debt ceiling remains unchanged.

Congress has already voted ten times to raise the debt limit since 2001.