Yellen accuses Republicans of using debt ceiling as a threat.

Treasury Secretary Warns of Financial Chaos if Debt Ceiling Increase is Not Passed

Treasury Secretary Janet Yellen has issued a warning that the U.S. federal government will run out of money in June if the debt ceiling increase is not passed. Speaking on ABC News’ “This Week,” Yellen emphasized the need to raise the debt ceiling so that the U.S. can pay its bills and avoid “financial and economic chaos.”

The Consequences of Not Raising the Debt Ceiling

Yellen stressed that failure to raise the debt ceiling would have serious consequences for the American people. She warned that a failure to honor all of its debt would call into question the U.S.’s creditworthiness, leading to permanently higher borrowing costs for Americans. This would affect everything from buying a home to buying a car, and could even cause a steep economic downturn.

Republican Lawmakers Accused of Holding “a Gun” to the Heads of the American People

Yellen accused Republican lawmakers of trying to negotiate with a “gun to the head of the American people” by insisting on significant spending cuts and other reforms before agreeing to raise the debt ceiling. She emphasized that negotiations should not take place with such a threat hanging over the American people.

The Importance of Meeting Responsibility

Yellen stressed the importance of Congress meeting its responsibility to raise the debt ceiling, pointing out that it has been raised 78 times since 1960, always with bipartisan support. She emphasized that it is unacceptable for Congress to threaten economic calamity for American households and the global financial system as the cost of raising the debt ceiling and agreeing on budget priorities.

• Yellen warns of financial chaos if debt ceiling increase is not passed
• Failure to raise the debt ceiling would lead to permanently higher borrowing costs for Americans
• Republican lawmakers accused of holding “a gun” to the heads of the American people
• Congress must meet its responsibility to raise the debt ceiling

It is clear that the U.S. cannot afford to delay raising the debt ceiling any longer. The consequences of failing to do so would be dire for the American people and the global financial system. It is time for Congress to meet its responsibility and act in the best interests of the American people.