Yellen says Democrats can tackle debt limit alone if needed

Treasury Secretary Janet Yellen attends the House of Representatives Financial Services Committee hearing on September 30, 2021 in Washington, United States. Al Drago / Pool via REUTERS

DUBLIN, Nov. 1 (Reuters) – Democrats in Congress must stand ready to tackle the country’s debt ceiling alone if Republicans refuse to go bipartisan to avoid a national default as early as next month, Treasury Secretary Janet said Yellen on Monday.

“There are a number of ways to raise the debt ceiling,” she told reporters at a press conference in Dublin after the meetings before traveling to Scotland for the COP26 UN Climate Change Conference.

“I firmly believe that this is the responsibility of both parties. There is a way for the Democrats to do this all by themselves.”

Legislators temporarily raised the federal government’s credit limit to $ 28.9 trillion in October. Continue reading

Yellen has repeatedly urged Congress to act bipartisan to expand the US government’s borrowing capacity or to risk dangerous economic consequences that would trigger a recession and have global repercussions.

In several warnings to US lawmakers, Yellen has indicated that Republicans and Democrats have come together in the past to pay off the nation’s debt and avoid “catastrophic” effects.

The increase in the debt ceiling allows the Treasury Department to fund previous expenditures, including measures passed under former Republican President Donald Trump.

But Trump’s Republicans in Congress have cited Biden Democrats’ proposed infrastructure and domestic spending bills – none of which have yet been passed – as reasons they won’t vote to raise the US debt ceiling.

Biden has called the Republican’s stance “dangerous,” a notion echoed by some top business leaders. Continue reading

Yellen said Monday that Democratic leaders in Congress could use a process called reconciliation to self-enforce the debt ceiling law, adding that the Treasury Department is working closely with House spokeswoman Nancy Pelosi and Senate majority leader Chuck Schumer I’ll work together to try and find a way to do this by the December 3rd deadline, “if necessary.

Yellen made a similar statement in an interview with the Washington Post published earlier Monday. Continue reading

In a separate interview with Reuters, Yellen said the United States could try to cut some mutual tariffs on China. Continue reading

She also discusses Biden’s anticipated appointment as chairman of the Federal Reserve and the potential support for global tax regulations from technology companies. Continue reading

Reporting by Andrea Shalal; Writing from Susan Heavey; Arrangement by Chizu Nomiyama and Alison Williams

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/world/us/yellen-says-democrats-if-needed-must-tackle-debt-limit-alone-washington-post-2021-11-01/