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 harmed and unnecessary economic headwinds will be created for the United States, the secretary said.

Unnecessary risks

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

Read also | “The United States has no choice but to prepare for a shutdown.”

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.