Treasury Secretary Janet Yellen speaks during a House Financial Services Committee hearing, Thursday, Sept. 30, 2021 on Capitol Hill in Washington. (Al Drago/Pool via AP)
UPDATED 8:44 AM PT – Tuesday, October 5, 2021
Treasury Secretary Janet Yellen said “it would be catastrophic to not pay the government’s bills” while warning of the potential impact of not raising the debt ceiling. In an interview Tuesday, she said she would fully expect a recession if Congress fails to raise the debt limit.
The official contended that raising the debt ceiling should be routine and is almost always done on a bipartisan basis. Yellen stressed not acting on the issue could put the economy at risk amid it’s ongoing recovery from the coronavirus pandemic.
“To place an arbitrary ceiling on our debt and to create periodic crises, manufactured crises that really place out economy and our financial system at risk, especially now that we are recovering from the pandemic in a fragile way, I consider this irresponsible,” she stated. “I believe that both parties have a responsibility to get this done.”
Lawmakers are facing an October 18 deadline to stop the U.S. from defaulting on its debt for the first time ever. Meanwhile, Joe Biden appears to be pointing his finger at Republicans regarding the matter, perhaps is an attempt to deflect the blame.