Yellen, US Treasury: "Unnecessary Shutdown Poses Economic and Household Risks... Work Now"

CNN "Yellen Minister's Strongest Warning"

U.S. Secretary of the Treasury Janet Yellen warned on the 29th (local time) that a government shutdown would paralyze essential government functions, potentially harming the U.S. economy and households, urging efforts to prevent an "unnecessary shutdown."

According to CNN and Bloomberg, Secretary Yellen said in a speech at the Port of Savannah, Georgia, that a shutdown would affect many critical government functions, from loans to farmers and small businesses to food and workplace safety inspections, and the Head Start program (early education support for low-income children). She also pointed out that major infrastructure projects aimed at improving Americans' daily lives and modernizing the economy could be delayed due to the shutdown.

Yellen further expressed concern that "if Republican House members fail to act responsibly, it will cause economic headwinds that harm American households and undermine the foundation of the progress we have currently achieved."

U.S. Treasury Secretary Janet Yellen is visiting the Port of Savannah in Georgia on the 29th (local time) and talking with local officials.
[Photo by Yonhap News]

On the same day, Secretary Yellen visited the area to promote investments in Georgia's transportation and transit networks, high-speed internet, drinking water quality improvements, and clean energy enhancements under the bipartisan Infrastructure Law passed by Congress in 2021. CNN described her remarks as the strongest warning yet from Yellen about the adverse effects of a shutdown.

Earlier that day, a temporary budget bill led by Republican House Speaker Kevin McCarthy was brought to the House floor but was rejected with 198 votes in favor and 232 against. The House has 222 Republican seats and 212 Democratic seats, so Republicans could pass the bill on their own, but 21 hardline Republicans voted against it, stalling Speaker McCarthy.

To persuade the hardliners, Speaker McCarthy prepared a budget plan that would cut government spending by about 30%, excluding some functions such as defense, veterans affairs, homeland security, and disaster relief, and included strengthened border control measures. However, the hardliners opposed it, saying it was insufficient.

To avoid a shutdown, Congress must pass the government budget before the start of the next fiscal year on October 1, but with only two days left, the possibility is becoming slim.

Kevin McCarthy, Speaker of the House
Photo by Yonhap News

This content was produced with the assistance of AI translation services.