Treasury Secretary Janet Yellen warned Monday that the U.S. government risks “economic and financial catastrophe” if the House fails to pass a bill to raise the $31.4 trillion debt ceiling. The nation hit the statutory limit last month, and negotiations between the White House and Republican members of Congress have continued with House Speaker Kevin McCarthy giving an address on the debt ceiling Monday evening.
The Treasury Department has taken several temporary measures to help the government avoid default, but Yellen called on every responsible member of Congress to agree to raise the debt ceiling, noting that America has paid all its bills on time since 1789 and failure to do so would cause a catastrophe.
The Treasury Secretary also commented on the job market and inflation, noting that last month the U.S. created 500,000 jobs and inflation has been decreasing for the last six months. President Joe Biden is expected to address both issues in his State of the Union speech Tuesday.
The current financial situation is of great concern to the Treasury Department and the government is taking extraordinary steps to avoid default. It is uncertain if the House will pass a bill to raise the debt ceiling and how the President will address the issues of job growth and inflation in his speech. However, it is clear that the Treasury Department is taking the situation seriously and is urging Congress to act quickly to ensure the nation's economic security.