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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsYellen calls for 'very destructive' debt limit to be abolished
Treasury Secretary Janet Yellen said Thursday she supports abolishing the federal debt limit, calling it a "very destructive" threat to the full faith and credit of the U.S.
In congressional testimony, Yellen argued it made no sense to limit the Treasury's ability to pay bills already approved by Congress and the president with an arbitrary cap on how much debt it can issue.
"When Congress legislates expenditures and puts in place tax policy that determines taxes, those are the crucial decisions Congress is making," Yellen said during a hearing before the House Financial Services Committee, where she appeared beside Federal Reserve Chair Jerome Powell.
"And, if to finance those spending and tax decisions, it's necessary to issue additional debt, I believe it's very destructive to the president and myself, the Treasury secretary, in the situation where we might be unable to pay the bills that result from those past decisions."
https://www.msn.com/en-us/news/politics/yellen-calls-for-very-destructive-debt-limit-to-be-abolished/ar-AAP0nHi
Yellen lends support for effort to remove the debt ceiling altogether
With a potential default looming for the U.S. in October, Treasury Secretary Janet Yellen said Thursday she would just as soon see the power over debt limits taken away from Congress.
A bill introduced in May would repeal the national debt ceiling, and Yellen said "yes, I would" when asked during a House hearing if she backs the effort.
She noted that Congress makes the decisions on taxes and spending, and should provide the ability to pay those obligations.
"If to finance those spending and tax decisions, it's necessary to issue additional debt, I believe it's very disruptive to put the president and myself, the Treasury secretary, in a situation where we might be unable to pay the bills that result from those past decisions," she said in response to a question from Rep. Sean Casten, D-Ill.
https://www.msn.com/en-us/money/markets/yellen-lends-support-for-effort-to-remove-the-debt-ceiling-altogether/ar-AAP0o6V
2naSalit
(86,061 posts)WHITT
(2,868 posts)If Moscow Mitch is gonna force the Dems to deal with the debt limit by themselves, then they may as well get rid of it. The Dems always went along with raising the limit, it's only when the Dems are in power that the Repubs threaten extortion.