Secretary Yellen: The closure undermines American economic growth

The US government shutdown will undermine growth in the US economy as key government programs for businesses are affected and major infrastructure projects are delayed. This was stated by US Treasury Secretary Janet Yellen.

This shutdown could begin at the end of this week if an agreement is not reached between Democrats and Republicans in the House of Representatives on the government’s budget. This closure would lead to the cessation of many government functions.

According to Yellen, it is very important to prevent a shutdown, and she called on Republicans in the House of Representatives to take responsibility for this. Otherwise, American families will be affected and unnecessary economic headwinds will be caused to the United States, the minister said.

“The shutdown impacts many important government functions, from loans to farmers and small business owners, to food safety and working condition inspections to supporting programs for children. It could delay major infrastructure projects,” Yellen said.

The White House’s chief economic adviser also warned of the damage to the economy as a result of the closure. Lael-Brainard said unnecessary risks are being taken for an economy that has been very resilient so far.