Yellen lends support for effort to remove the debt ceiling altogether

She pointed out that Congress decides on taxes and spending and should be able to fulfill those obligations.
A bill was introduced in May to repeal the national debt ceiling. Yellen responded "yes, I would" during a House hearing if asked if she supports the effort.

A potential default is looming for the U.S. this October. Treasury Secretary Janet Yellen stated Thursday that she would like to see Congress lose control of debt limits.

In response to a question by Rep. Sean Casten (D-Ill.), she stated that "if to finance those spending decisions and tax decisions it's necessary for us to issue additional debt, I believe this is very disruptive."

These remarks were made at a hearing by the House financial service committee on Treasury and Federal Reserve's economic response in the face of the Covid pandemic.

Casten claimed he was questioning Yellen about the idea of removing the debt limit, and not the specific bill, which was introduced by Rep. Bill Foster (an Illinois Democrat) along with a trio Democratic senators.

This week, Yellen warned that the extraordinary measures her department uses to continue funding government operations will expire on Oct. 18.

She stated earlier in the hearing that Congress should raise the spending limit to avoid dire consequences.

She stated that she believed it would be disastrous for the economy as well as individual families.

The U.S. has $28.4 trillion of debt. This includes nearly $700 billion that President Joe Biden incurred after he appointed Yellen as Treasury Secretary. Through the first 10 months, the budget deficit was $2.71 trillion.