Treasury Sec Yellen Warns of Catastrophe If Debt Ceiling Not Raised

The U.S. government faces risks “economic and financial catastrophe” If the House fails or is unable to pass a bill that would raise the debt ceiling of $31.4 trillion, Treasury Secretary will be appointed. Janet Yellen Monday

Although the nation reached its statutory limit last month as of last month, Republican members in Congress insist on increasing it. Negotiate changes to federal spending rules Before drafting a bill, we met with the White House. The Treasury Department, under Yellen, has taken There are several temporary solutions To help the government avoid default.

“America has paid all of its bills on time since 1789, and not to do so would produce an economic and financial catastrophe,” Yellen spoke to ABC’s George Stephanopolous Monday. “And every responsible member of Congress must agree to raise the debt ceiling.”

The Treasury Secretary stated that the House has always performed its duty to increase the limit, even if it has not done so often. “gone up to the wire.”

Kevin McCarthy, House Speaker, announced Monday that he would deliver an address about the debt ceiling at 5:30 p.m. ET. Talks between McCarthy, President Joe Biden They have been able to continue their negotiations amicably but no agreement has been reached.

Yellen also praised the higher-than-expected January job figures and steadily declining inflation during the interview. These are issues that she believes Biden will address in Tuesday’s State of the Union speech.

“Last month, we created over 500,000 jobs, more than 12 million since the president took office, and inflation is coming down,” She spoke. “It remains too high, but it’s been falling for the last six months.”