Treasury Secretary Janet Yellen was recently grilled by the Senate Finance Committee about the recent bank collapses. Unfortunately, many of these questions were overshadowed by partisan politics during Yellen’s testimony before Congress.
As Biden Treasury Secretary Janet Yellen appeared before the Senate Finance Committee on Thursday, things didn’t go well.
Townhall reports, Yellen attempted to explain the administration’s “not a bailout” bailout of two failed banks last week, why she claimed inflation was “transitory” at the start of the cost crisis, and why the Biden administration is refusing to negotiate the debt ceiling with Republicans.
According to Yellen, Biden’s bailout of Silicon Valley Bank and Signature Bank was a “decisive action” and America’s banking system is “stable,” adding, “Americans can be assured that their deposits will be there at all times.”
Yellen also reiterated Biden’s claim that the banking system is “strong” and that “no taxpayer money was used” in the bailout. However, the Biden administration has not explained where this apparently magic non-taxpayer money that banks paid into the Deposit Insurance Fund came from.
In addition, Yellen said Biden’s “top priority” is battling “high inflation.”
Although Yellen sang the praise of The American Rescue Plan passed by Congress and signed by Biden, she failed to mention that the tax-and-spending spree contributed to inflation soaring to its highest level in 40 years.
Meanwhile, according to Yellen, “deficit spending” isn’t the “main cause” of inflation, as she explained in response to Senator Ron Johnson’s (R-WI) line of questions, partly explaining why she thinks massive Biden administration spending policies are not to blame for the price increases that have not occurred for four decades.
And, when asked about raising the debt ceiling by Senator Mike Crapo (R-ID), Yellen refused to say that President Biden or his administration would work with Republicans in Congress to negotiate a bill lifting the debt limit while cutting spending.
And finally, Senator Bill Cassidy (R-LA) brought up Biden’s refusal to work with lawmakers on the issue of protecting Social Security’s solvency again. Asked to explain Biden’s actions, Yellen was unable to back up her claim that Biden “cares deeply” about the program.
The Biden administration must remember that this isn’t a game; it’s about protecting our economy and ensuring that we have a secure financial system going forward. That means taking action now instead of waiting until another crisis hits us again down the road. Treasury Secretary Yellen needs to show us that she understands this urgency and is willing to take concrete steps towards strengthening our banking system and preventing future failures from happening again. Only then can we be sure that we won’t be facing another crisis like this one anytime soon.
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