Janet Yellen has a warning for Congress: raise the debt ceiling or the government will run out of cash soon.
The Treasury Secretary Wednesday told lawmakers that Uncle Sam’s coffers will likely run dry by the end of October, forcing a government shutdown that could be particularly devastating as the economy struggles to recover from the COVID pandemic.
“A delay … would likely cause irreparable damage to the U.S. economy and global financial markets,” the nation’s top bean counter wrote.
“At a time when (Americans) are still suffering from the effects of the ongoing global pandemic, it would be particularly irresponsible to put the full faith and credit of the United States at risk,” Yellen added.
The dire warning comes as leaders of both parties and President Biden are locked in a high-stakes game of political chicken over the debt ceiling and the proposed twin $4.5 trillion infrastructure spending packages that are the White House’s top priority.
Democrats say raising the debt ceiling should be a no-brainer for both parties. They have underscored the point by linking it to a widely popular measure providing emergency aid to areas slammed by Hurricane Ida and temporary assistance for America’s airlifted Afghan allies.
But Republicans say they won’t go along with raising the debt ceiling unless Democrats give up their effort to skirt their filibuster power and pass a massive $3.5 trillion infrastructure plan to go along with a $1.2 trillion bipartisan plan that some GOP lawmakers back.
Senate Minority Leader Mitch McConnell (R-Ky.) recently told Democrats that if they want to enact a budget-busting big spending bill without GOP support they should own it by raising the debt ceiling in the same package.
House Speaker Nancy Pelosi rejected that idea Wednesday when she vowed to force lawmakers to vote separately on raising the debt ceiling, which would effectively amount to a vote on avoiding a painful government shutdown in the middle of a global pandemic.
The war of words sets up a looming political standoff that adds an extra layer of drama to the fight over the pricey infrastructure bills that Biden has made the No. 1 priority for his young presidency.
Pelosi set a Sept. 27 deadline for a vote on the bipartisan infrastructure deal as part of a deal with a small group of moderate Democratic House lawmakers, a move that bought a bit more time to flesh out the bigger plan.
Progressives, on the other hand, are threatening to vote against the bipartisan infrastructure deal unless all 50 Democrats in the evenly divided Senate vote to pass the much bigger deal, which includes big bucks to combat climate change but also expensive goodies like free community college and pre-school and expanding Medicare.
Sen. Joe Manchin (D-W.V.) and other moderates say they won’t support everything that’s in the $3.5 trillion plan and want tax hikes to fund them, adding another big headache to the equation.
Despite the internal divisions, Democrats still hold both houses of Congress and the White House, so the smart money says they will figure out a way to pass the infrastructure plans and answer Yellen’s pleas to prevent a government shutdown. But it’s going to be a rocky road getting there.
©2021 New York Daily News. Visit nydailynews.com. Distributed by Tribune Content Agency, LLC.
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Fire up those government cash printers like you always do. And you’re wanting to pass a $3.5-trillion-dollar “infrastructure” bill??? You’re trying to go forward and backward at the same time.
I’m running out of cash, too—can I raise my debt ceiling?
HOWS about we RAISE the money, via CONFISCATING ALL THE ASSETS Of everyone in congress, INCLUDING all their business comrades…
Unbelieveable! stop giving away our taxpayers money. maybe all our elected officials shoul have a lesson in economics and not give away our country to non citizens we are a benevolent country,this has gone too far..to top it all did anyone see one of the most radical,irresponsible congresswoman in congress sporting her gown at a 30,00 dollar ticket affair. is that all she can do? yet, pelosi is scared of her and her cohorts. pelosi should be impeached,too she brought about most of what is going on. she lives in her mansion closed out from the disasters in her district.sure doesn’t care abut our country. not to mention what her and biden’s hanlers has done to our country. a thought has any of them ever had to rely on shopping at a dollar tree? jus a thought,probablt doesn’t know they exist.
smart money? or devious actions? when you live on the hill and have No idea of what the average working citizenhas to do to buy a store brand ice cream vs. your top of the line one’s and the freezer you can afford Be Quiet stop all the nonsense and become a person who has real concern for our country not the walk on wter attitude. you should resign and take a few with you especially shumer and waters
Democrats are right about it being a no-brainer; democrats have no brains for financial responsibility, they spend like the government has a no limit credit card that will automatically refill. I can’t spend what I don’t have yet am expected to contribute to the stupidity of Democrat waste.