Skip to main content
Home
Menu
Unbiased. Straight Facts.™
Search Headline, News, Video …
Close Menu
Jerome Powell and Janet Yellen discussed inflation and the debt ceiling in front of the Senate.
Politics

Inflation, debt ceiling addressed as Yellen, Powell testify before Senate

Share

By Ben Burke (Digital Producer), Emma Stoltzfus (Editor)

Federal Reserve Chair Jerome Powell said the Fed will consider acting more quickly to counter rising inflation and Treasury Secretary Janet Yellen reiterated the importance of Congress dealing with the debt ceiling. Their comments came as they testified in front of the Senate Banking Committee Tuesday.

The committee hearing came just days before the temporary suspension of the debt ceiling ends. Last month, Congress passed a bill that allows the government to continue paying its debts through Dec. 3. Votes on the matter came following a long standoff in the Senate over the debt ceiling.

“I cannot overstate how critical it is that Congress address this issue. America must pay its bills on time and in full,” Yellen said in her prepared testimony. “If we do not, we will eviscerate our current recovery.”

Last Month, Yellen warned that without a hike in the debt ceiling, the U.S. government could default on its debt obligations for the first time soon after Dec. 15.

“In a matter of days, the majority of Americans would suffer financial pain as critical payments, like Social Security checks and military paychecks, would not reach their bank accounts, and that would likely be followed by a deep recession,” Yellen said.

As Yellen discussed the debt ceiling, Powell was grilled by Senate Republicans on inflation, which Powell said himself, “will linger well into next year” in his prepared remarks.

“I’ve been warning about the risks of higher and more persistent inflation since January,” Sen. Pat Toomey (R-PA) said in his opening statement. “Unfortunately, the Fed has decided to continue its emergency monetary policy, adding fuel to the inflationary fire, long after the economic emergency had passed.”

The Fed has begun reducing its monthly bond purchases at a pace that would end those purchases in June. However, Powell testified that Fed officials will discuss tapering more quickly when it next meets in mid-December.

“It is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases … perhaps a few months sooner,” Powell said. “We understand that high inflation imposes significant burdens, especially on those less able to meet the higher costs of essentials like food, housing, and transportation.”

Annie Andersen: THE CLOCK TO DECEMBER 3 IS TICKING… THAT’S WHEN THE TEMPORARY SUSPENSION OF THE DEBT CEILING ENDS. 

TESTIFYING BEFORE THE SENATE BANKING COMMITTEE TREASURY SECRETARY JANET YELLEN 

REITERATED THE IMPORTANCE OF CONGRESS DEALING WITH THE DEBT CEILING. 

Janet Yellen: ”I cannot overstate how critical it is that Congress address this issue. America must pay its bills on time and in full. If we do not, we will eviscerate our current recovery.”

Annie Andersen: CONGRESS PUT THE ISSUE ON HOLD IN OCTOBER. 

NOW IT’S BACK ON THE TABLE  AND CONGRESS ISN’T ANYWHERE NEAR AN AGREEMENT ON HOW TO PROCEED. 

MAJORITY LEADER CHUCK SCHUMER HAS SAID HE WANTS A BIPARTISAN AGREEMENT.

Sen. Chuck Schumer: “We must pass the debt debt limit we cannot let the full faith and security of his full faith and credit of this country uh a lapse and we hope to do it in a bipartisan way.”

Annie Andersen: HOWEVER REPUBLICANS WANT DEMOCRATS TO DO IT ON THEIR OWN THROUGH RECONCILIATION… 

SENATOR LINDSEY GRAHAM TWEETING: “IT’S IMPERATIVE THAT SENATE REPUBLICANS DO NOT AID AND ABET THE RAISING OF THE DEBT CEILING”

YELLEN HAS GIVEN DECEMBER 15 AS THE DAY WHEN THE COUNTRY COULD RUN OUT OF MONEY TO PAY ITS BILLS. 

WANT TO KNOW MORE ABOUT THE DEBT CEILING?

CHECK OUT MY PIECE ON IT, JUST HEAD TO OUR WEBSITE AND SEARCH FOR AMERICA? A DEADBEAT. 

STRAIGHT FROM DC, I’M ANNIE ANDERSEN

MediaMiss™

Underreported stories from each side

Media Miss by the Left
House Republicans, led by Rep. James Comer, R-Ky., requested an interview with White House physician Kevin O'Connor.

House Republicans request interview with White House physician

14 sources | 14% from the left AP Images
Media Miss by the Right
Americans are becoming more skeptical about the value and cost of college according to a poll released Monday, July 8.

Is college worth it? Poll finds only 36% of Americans have confidence in higher education

20 sources | 6% from the right Getty Images
Powered by Ground News™

VOTE WITH THE UNBIASED, STRAIGHT FACTS.™

We promise you context and clarity when it matters the most!

More Election Stories

Unbiased news.

Directly to
your inbox.

Free!

MOST POPULAR

Politics

The House to vote on the SAVE Act, proof of citizenship requirement to vote

Jul 15

Top House Democrats call for Biden to step aside in private meeting

Disney heiress, other mega donors won’t finance DNC until Biden drops out

Getty Images

U.S.

Alec Baldwin heads to trial in ‘Rust’ case

Jul 8

Parenting influencers must now pay their children under Illinois law

To save spotted owls from extinction US officials may kill thousands of barred owls

Reuters

International

US, Panama reach deal to shut down Darién Gap, launch deportation flights

Jul 5

Biden to speak in first TV interview since debate amid calls to drop out

Gazan doctor released months after arrest by IDF says guards beat him

Getty Images

Tech

NASA volunteers complete yearlong Mars simulation

Jul 8

Startup using AI cameras to catch people who blow stop signs

Next-gen AI model could save energy, transform how world uses tech

Getty Images