Al Drago | Piscine | Reuters
A bill introduced in May would repeal the national debt ceiling, and Yellen said “yes, I would” when asked in a House hearing if she supported the effort.
She noted that Congress makes the decisions on taxes and spending, and should provide the capacity to pay those obligations.
The remarks were made during a hearing before the House Financial Services Committee on the Treasury and the Federal Reserve’s economic response to the Covid pandemic.
Casten said he was asking Yellen about the concept of removing the debt ceiling, not the particular bill, brought forward by Rep. Bill Foster, also a Democrat from Illinois, along with a trio of Democratic senators.
Yellen warned this week that the extraordinary measures his department uses to continue funding government operations expire on October 18.
Earlier in the hearing, she said the consequences would be dire if Congress did not raise the spending limit.
“I think it would be catastrophic for the economy and for individual families,” she said.
The United States is currently in debt of $ 28.4 trillion, of which nearly $ 700 billion has been incurred since President Joe Biden took office and chose Yellen to head the Treasury. The budget deficit in the first 10 months of the fiscal year stood at $ 2.71 trillion.
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