Statement by Secretary of the Treasury Janet L. Yellen on the Bipartisan Passage to Suspend the Debt Limit

WASHINGTON- Secretary of the Treasury Janet L. Yellen issued the following statement after Congress passage of the Fiscal Responsibility Act.  

“I am pleased that, under President Biden’s leadership, Congress has passed bipartisan legislation to suspend the debt limit and prevent a first-ever default by the United States. This legislation protects the full faith and credit of the United States and preserves our financial leadership, which is critical to our economic growth and stability.

A default would have caused severe hardship for American families, potentially leading to the loss of millions of jobs and trillions in household wealth, and higher financing costs for American taxpayers for years to come. The bipartisan agreement also protects against efforts to roll back the President’s core economic agenda – one that has contributed to a historically strong and resilient economic recovery. Congress has a duty to ensure that the United States can pay its bills on time, and I continue to strongly believe that the full faith and credit of the United States must never be used as a bargaining chip.

Now, our focus is to continue to deliver on the President’s economic agenda. Treasury will continue to effectively implement the Inflation Reduction Act, including the modernization of the IRS, to maximize economic benefits for American taxpayers, families, and workers.”