Yellen Urges Action on Debt Ceiling, Addresses Bank Collapse in House Testimony

United States Treasury Secretary Janet Yellen testified to the House Ways and Means Committee on Friday, urging action to address the debt ceiling and addressing the collapse of the Silicon Valley Bank.

For Context: The U.S. hit its $31.4 trillion debt ceiling in January. Yellen previously indicated the treasury can enact “extraordinary measures” to pay the government’s bill until the summer, at which point the government faces a potential debt default. 

Key Quotes: Speaking on the U.S. reaching the debt ceiling, Yellen said, “in my assessment — and that of economists across the board — a default on our debt would trigger an economic and financial catastrophe.” Yellen urged “all members of Congress to come together to address the debt limit — without conditions and without waiting until the last minute.” Addressing a Republican proposal to prioritize certain payments, Yellen said, “prioritization is simply not paying all of the government's bills when they come due,” adding that “we're kidding ourselves because not paying the government's bills will produce economic and financial collapse.” Speaking on the collapse of Silicon Valley Bank, Yellen said, “there are recent developments that concern a few banks that I'm monitoring very carefully and when banks experience financial loss it is and should be a matter of concern.”

How The Media Covered It: Left- and center-rated outlets focused more on Yellen’s comments regarding the dangers of the U.S. defaulting on its debt. Right-rated outlets focused more on her comments regarding Silicon Valley Bank and racial bias.