Bloomberg: Janet Yellen Warns of Economic Repercussions and Urges Avoidance of Government Shutdown

Bloomberg — US Treasury Secretary Janet Yellen warned of the economic repercussions of a looming government shutdown, saying it would hurt American families and cause economic headwinds that could undermine progress made to improve prospects.

“A shutdown would affect many key government functions, from lending to farmers and small businesses to food and labor safety inspections to Head Start programs for children,” Yellen declared, according to prepared remarks she was to deliver on Friday. Head Start offers early childhood education to lower-income families.

He added that a closure could also delay important infrastructure improvements. Yellen made the comments in a speech in Savannah, Georgia, on a visit intended to promote the Biden administration’s infrastructure investments.

“These investments drive long-term economic growth, create economic resilience, and increase economic opportunity,” Yellen declared.

Yellen’s trip is part of a broader effort by the administration ahead of the 2024 election campaign, aimed at convincing Americans that President Joe Biden deserves credit for the improving US economy. Despite high inflation, which has receded somewhat, unemployment remains near the lowest level in decades.

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