White House leaves door open to complete debt ceiling elimination



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White House press secretary Jen Psaki has suggested that President Joe Biden may back Treasury Secretary Janet Yellen’s approval to eliminate the debt ceiling altogether to avoid future credit crises.

When asked during his Friday briefing if Biden agreed with Yellen’s comments, Psaki said the administration’s current goal “for the next 17 days” is “to increase the limit. of the debt to the Senate “.

“This is what we are working towards,” she continued. “There’s a lot of time after that to discuss what the way forward looks like.”

DEMOCRATS: DO NOT APPLY IT “DISQUALIFICATION”

Congress introduced a bill in May that would eliminate the debt ceiling, but the White House has not issued an administrative policy statement approving it.

Yellen, testifying on the Hill Thursday, supported the action.

“Yes, I would,” she said in response to a question from Rep. Sean Casten, an Illinois Democrat, on the subject. “If in order to fund these tax expenditures and decisions it is necessary to issue additional debt, I think it is very disturbing to put the President and myself, the Secretary of the Treasury, in a situation where we could being unable to pay the bills that result from these recent decisions. “

Berkshire Hathaway CEO Warren Buffett also endorsed the elimination of the debt ceiling during negotiations on the matter in 2011. He said on an investor call that allowing a US credit default “would likely be the dumbest act Congress has ever done “and added that” having a debt ceiling to begin with is a mistake. “

“It seems such a waste of time for a country with a lot of things to do,” he added. “I would love to see them eliminate the idea because it results in these periodic blocking operations where everyone is using it for posture purposes.”

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You can watch Psaki’s briefing below.

Washington Examiner Videos

Key words: News, Joe Biden, Janet Yellen, Jen Psaki, White House, Debt Ceiling

Original author: Christian Datoc

Original location: White House leaves door open to complete debt ceiling elimination

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