Yellen Urges Congress to Raise US Debt Ceiling

US Treasury Secretary Janet Yellen stressed her call for Congress to raise the US debt ceiling through a bipartisan move in Congress, with the federal government’s ability to borrow imminently running out.

Such a move would not raise government spending or pave the way for future spending, she said in a statement.

The US is expected to exhaust its borrowing power in October. Failure to agree to raise the legal debt ceiling, which now stands at $28.5 trillion, could lead to another federal government shutdown or debt default.

Yellen, who earlier urged action in a July 23 letter to members of Congress, noted that the majority of outstanding debt had accrued before the Biden administration took office. She said Congress should act as it has in the past, describing it as a “shared responsibility.”