Janet Yellen testifies before Congress and praises Biden's work to "provide cost relief" for families

The treasury secretary urged representatives to raise the federal debt ceiling and warned that a default would cause an "economic and financial catastrophe."

Janet Yellen, Secretary of the Treasury — (Wikimedia Commons)

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Verónica Silveri Pazos

10 de marzo, 2023

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This Friday, Treasury Secretary Janet Yellen testified before the House Ways and Means Committee on President Joe Biden's proposed ten-year budget.

In one of her remarks, the secretary stated that Biden's work to "alleviate costs in areas like energy" has "made a significant difference for American families."

Yellen calls for raising the debt ceiling to avoid "economic and financial catastrophe"

Yellen, also urging representatives to raise the federal debt ceiling without conditions, warned that a default would cause an" economic and financial catastrophe." The secretary argued that not raising the $31.4 trillion debt ceiling would jeopardize the economic progress the U.S. has made since the pandemic:

In my opinion, and in the opinion of all economists, a default on our debt would trigger an economic and financial catastrophe (...) I urge all members of Congress to come together to address the debt limit, without conditions and without waiting until the last minute.

The Secretary is keeping a close eye on the Silicon Valley Bank situation

The Secretary assured that she is keeping an eye on the financial situation of some banks, referring to the case of Silicon Valley Bank (SVB), and indicated that "when banks experience financial losses, it is and should be a cause for concern."

There are recent developments affecting some banks that I am monitoring very closely, and when banks experience financial losses it is and should be cause for concern.

The shares of Silicon Valley Group, SVB's parent company, plummeted 60% yesterday. This has led to sharp dips in share prices within the financial sector.