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Janet Yellen warns shutdown would be ‘dangerous and unnecessary’


By Matt Egan

New York (CNN Business) — Treasury Secretary Janet Yellen will warn Congress in a speech later Friday morning that a government shutdown would be “dangerous and unnecessary” because it would undermine the American economy and disrupt key government functions.

The comments, shared first with CNN, represent the strongest warning to date from Yellen about the negative consequences of a government shutdown that appears to be increasingly likely.

In prepared remarks to be delivered during a speech in Savannah, Georgia, Yellen calls on House Republicans to “do their jobs” by moving quickly to keep the government open and fund key priorities.

“The failure of House Republicans to act responsibly would hurt American families and cause economic headwinds that could undermine the progress we’re making,” Yellen said. “A shutdown would impact many key government functions – from loans to farmers and small business, to food and workplace safety inspections, to Head Start programs for children.”

Yellen added that a shutdown could delay major infrastructure projects aimed at improving the lives of everyday Americans and modernizing the economy.

Unless lawmakers reach an eleventh-hour deal, Congress appears very likely to trigger a government shutdown this weekend. As CNN previously reported, House Speaker Kevin McCarthy does not appear to have the votes to pass a last-ditch stopgap bill to extend government funding beyond Saturday.

“When I left Washington this morning, it was still unclear whether Congress would pass legislation in time to avoid a dangerous and unnecessary shutdown,” Yellen said.

Yellen plans to use the speech at the Port of Savannah to tout the economic benefits of the Bipartisan Infrastructure Law, highlighting investments aimed at improving Georgia’s transportation, high-speed internet, safe drinking water and clean energy.

The speech will also seek to contrast these long-term investments from a law signed into law by President Joe Biden with the negative consequences of a government shutdown that Democrats will blame on Republicans.

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Article Topic Follows: CNN - Money

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