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.
YELLEN: "Shareholders and debt holders are not being protected by the government…No taxpayer money is being used or put at risk with this action." pic.twitter.com/gMbFCXZQVR
— Townhall.com (@townhallcom) March 16, 2023
In addition, Yellen said Biden’s “top priority” is battling “high inflation.”
JANET YELLEN: "I consider high inflation the number one economic problem that all of us need to face and address…I was very supportive of the American Rescue Plan." pic.twitter.com/cOo9OWyTRf
— Townhall.com (@townhallcom) March 16, 2023
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.
Senator Ron Johnson: "Would you agree those are the top three causes of inflation? Deficit spending, high energy costs, and supply dislocations?"
— Townhall.com (@townhallcom) March 16, 2023
YELLEN: "I don't believe the deficit spending is one of the main causes of inflation."
Senator Ron Johnson: "You don't?!" pic.twitter.com/rxCVJtgbMx
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.
Senator Crapo: "Can you commit, at least, to negotiate with Republicans as we try to work forward on finding some aspects of fiscal restraint to put into the debt ceiling discussion?"
— Townhall.com (@townhallcom) March 16, 2023
YELLEN: "The debt ceiling simply must be raised." pic.twitter.com/hW0DiVgSSC
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.
SENATOR CASSIDY: "Why doesn't the president care?"
— Townhall.com (@townhallcom) March 16, 2023
YELLEN: "He cares very deeply."
CASSIDY: "Then where is his plan?"
YELLEN: "He stands ready to work with Congress."
CASSIDY: "That's a lie! A bipartisan group of senators have repeatedly requested to meet with him!" pic.twitter.com/jpud6ai0MO
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.
Let’s continue this conversation, in the comments below.