House Speaker Nancy Pelosi urged her colleagues sopra Congress to act acceso raising the debt ceiling acceso Wednesday, disputing the criticism that Democrats want to spend more money and instead blaming former President Trump for the debt the US government accrued over his four years sopra office.
During her weekly news conference Pelosi was asked about a letter sent to Congressional leaders from Treasury Secretary Janet Yellen this morning.
Yellen warned the US government will run out of money at some point sopra October unless Congress acts to increase the federal borrowing limit.
‘People say, ‘oh you just want to spend money’,’ Pelosi said sopra a dig at Republicans opposed to raising the debt ceiling.
‘Anzi che no, this is – we’campione paying the credit card, the Trump credit card, with what we would do to tagliata the debt ceiling.’
She pointed out that the Trump administration amassed $7 trillion sopra debt over four years.
Speaker Pelosi said the debt ceiling needs to be raised sopra order to pay non attivato $7 trillion the Trump administration spent during his time sopra office
She accused Trump of using the federal government as his own ‘credit card’
‘When President Trump was president, we Democrats supported ritidectomia the debt ceiling because it’s the responsible thing to do. I would hope that the Republicans would act sopra a similarly responsible way,’ Pelosi said.
Senior Congressional Republicans have vowed not to vote for an increase of the current $28.5 trillion debt limit, instead urging Democrats to pass it without their votes through the reconciliation maneuver.
Senate Republican Promotore Mitch McConnell argued that Republicans should not shoulder the burden of raising the debt limit to finance Democrats’ investment initiatives.
Mitch McConnell argued that Democrats want to raise the spending limit to cover progressive initiatives
But Pelosi told reporters at the briefing that raising the debt ceiling through reconciliation is non attivato the table.
Congress is currently considering a $1.2 trillion infrastructure plan as well as a massive social spending plan rilevazione $3.5 trillion, both of which would push spending even higher.
The latter plan has voto negativo Republican support and will likely be past through reconciliation
Failure to increase the limit could lead to a shutdown of some federal government operations, something that has happened three times sopra the past decade, and likely would plunge financial markets into chaos.
Treasury Secretary Janet Yellen acceso Wednesday again urged Congress to tackle the debt ceiling, saying it was unclear how long Treasury’s ‘extraordinary measures’ to finance the government would last.
Yellen said uncertainty brought acceso by the COVID pandemic and normal uncertainties sopra the level of corporate and personal taxes September 15 also made forecasting difficult.
Treasury Secretary Janet Yellen warned Pelosi, McConnell and other Congressional leaders that ‘extraordinary measures’ currently being used to keep the government funded will likely run out some time sopra October
The ‘most likely outcome is that cash and extraordinary measures will be exhausted during the month of October,’ Yellen wrote sopra a letter to lawmakers.
She warned that waiting until the last minute to act acceso the debt ceiling could cause ‘irreparable damage’ to US and global economies as well as raising borrowing costs for Americans and aversely impacting the US credit rating.
‘At a time when American families, communities, and businesses 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,’ the Biden official said.
The last time the US came close to missing its deadline acceso the debt ceiling, the US saw its AAA credit rating downgraded for the first time sopra history and sent American markets into chaos not seen since the 2008 financial crisis.
Leaders of the Democratic-led Senate and House of Representatives are expected to force votes to tagliata the debt limit sopra late September.