Yellen lends support for effort to remove the debt ceiling altogether

Janet Yellen, U.S. Treasury Secretary, addresses a House Financial Services Committee meeting in Washington, D.C., U.S. on Thursday, September 30, 2021.
Sarah Silbiger | Bloomberg | Getty Images

The U.S. faces a default in October. Treasury Secretary Janet YellenThursday’s statement was that she wanted to see Congress lose control of debt limit policy.

A bill was introduced in May to repeal the national debt limit. Yellen replied “yes,” when she was asked if the House would support the effort.

She pointed out that Congress decides on tax and spending and must be able to fulfill those obligations.

Responding to a question from Rep. Sean Casten D-Ill., she explained that if we want to finance the spending and tax decision, it is necessary to issue more debt. She said this in order to avoid being unable to pay any bills that may result from past decisions.

The following remarks were made during a hearing before the House Financial Services CommitteeThe Federal Reserve and Treasury’s response economic to the Covid pandemic

Casten claimed he was questioning Yellen regarding the idea of removing debt ceiling, and not about specific bill introduced by Rep. Bill Foster (an Illinois Democrat) along with a trio Democratic senators.

This week, Yellen warned of the extraordinary measures that her department uses to continue funding government operations expire Oct. 18

She stated earlier in the hearing that Congress should raise the spending limit to avoid dire consequences.

She said, “I believe it would be disastrous for the economy as well as for individuals’ families.”

Today, the U.S. is in $28.4 Trillion of debt. This includes nearly $700 Billion that was incurred during President Obama’s tenure. Joe BidenYellen was elected to lead the Treasury. In the first ten months of fiscal year, the deficit in the budget was at $2.71 trillion.

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