Treasury Secretary Janet Yellen attacked House Republicans Saturday, saying their attempts to negotiate spending cuts as the debt ceiling is hit are “very irresponsible.”
She previously sent a letter telling House Speaker Kevin McCarthy (R-CA) and other lawmakers that the government’s debt ceiling has been hit and that “extraordinary measures” must be implemented in order for the state to meet its financial obligations.
The debt ceiling is simply an arbitrary cap on the national debt created by Congress, according to the Daily Wire.
“The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future,” Yellen wrote in the letter sent earlier this month.
Treasury Secretary Janet Yellen has sent a letter to members of Congress alerting them that the United States has hit its debt ceiling and will implement “extraordinary measures” to keep paying its bills through June 5. pic.twitter.com/WKff0SmE9S
— The Recount (@therecount) January 19, 2023
Senate Minority Leader Mitch McConnell (R-KY) reacted to the news of the debt ceiling being reached at the time, saying he is not concerned about an incoming financial crisis.
In an interview with Associated Press, Yellen said that House Republicans pushing for less government spending are helping to create a “self-imposed calamity in the United States and the world economy.”
“This is about paying bills that have already been incurred by decisions with this and past Congresses and it’s not about new spending,” she said, arguing that certain expenditures cannot be “negotiated over whether or not we’re going to pay our bills.”
While Yellen maintains that the GOP push for spending cuts will spell disastrous consequences, even before the so-called “day of reckoning,” she reportedly believes lawmakers will eventually smooth the situation over as they are aware of the inevitable financial catastrophe that could occur should the federal government default on its obligations.
Yellen claimed that lessened trust in the U.S. government’s capability in paying off debt could cause “markets to become quite concerned.”
Currently, McCarthy is planning to meet with Joe Biden to negotiate on the debt ceiling while House GOP members are urging Democrats to spend less money. Ways and Means Committee Chairman Jason Smith (R-MO) made a statement blaming “the worst spike in prices in forty years” on “reckless spending” by the government.
“Instead of attacking his political opponents, President Biden should be spending this time working with House Republicans to address the debt ceiling in a way that imposes some fiscal sanity. Otherwise, the President is simply scheduling America’s next debt crisis,” he said. “We can find commonsense solutions to halt reckless spending, put American’s finances on stable footing, and ensure we meet our debt obligations.”
