US Treasury Secretary Yellen Urges Congress to Raise Debt Limit

WASHINGTON (Sputnik) – US Treasury Secretary Janet Yellen in a statement on Monday urged Congress to increase or suspend the debt limit on a bipartisan basis.

"In recent years Congress has addressed the debt limit through regular order, with broad bipartisan support. In fact, during the last administration, Democrats and Republicans came together to do their duty three times", the statement said. "Congress should do so again now by increasing or suspending the debt limit on a bipartisan basis".

Yellen warned Congress that failure to increase the debt limit would result in irreparable harm to the US economy and the lives of all Americans, the statement said.

The U.S. Treasury building is seen in Washington, September 29, 2008.

© REUTERS / Jim Bourg

The secretary also noted that increasing or suspending the debt limit doesn’t automatically increase government spending but simply allows the US Treasury to pay for previously made expenditures.

The total public debt of the United States has reached nearly $28.5 trillion in July, according to the last statement published by the US Treasury.

In July, the bipartisan Congressional Budget Office said the US government will most likely run out of money between October and November unless the debt ceiling was raised.