➤ Janet Yellen: Failure to raise the debt ceiling “would cause irreparable damage” to the US economy.

Chancellor of the Exchequer , Janet YellenToday, Congress urged United State To pass a bipartisan resolution to expand the amount of money the United States government can borrow, saying that Not raising the debt ceiling would “cause irreparable damage” to the economy.

Republican lawmakers, led by Senate Minority Leader Mitch McConnell (R-Kentucky), threatened to reject a vote on raising the debt ceiling, which came back into effect on August 1.

Instead, they asked Democrats to do so in a multi-million dollar budget settlement package that is unhindered and requires only a simple majority to pass.

McConnell said Punchbowl News Last month, “you can’t imagine there will be a single Republican vote to raise the debt ceiling” given how much Congress has already spent during the pandemic.

The debt ceiling does not control how much the government spends. This is the responsibility of Congress.

The cap prevents the Treasury from paying expenditures already approved by Congress, and failure to pay these expenditures will result in government default, which is unimaginable.

Republicans and Democrats have worked together to raise the borrowing limit three times during the Trump administration and several times in previous administrations.

Yellen’s call for a bipartisan approach to raising the debt ceiling is a signal against doing so with a Democrat-only reconciliation bill.

“As I said in my letter to Congress on July 23, raising or suspending the debt limit does not increase government spending, nor does it allow spending for future budget proposals; it simply allows the Treasury to pay the expenditures,” Yellen said in a statement.

The vast majority of debt subject to the debt limit had accumulated before the administration took office. This is a shared responsibility, and I urge Congress to work together on a bipartisan basis as it has done in the past to protect the entire faith and credit of the United States.”

softens, In a letter to Congress in JulyHe urged members to “protect the full confidence and credit of the United States by acting as quickly as possible” and said the department would take “extraordinary measures to prevent states from fulfilling their obligations.”