Government shutdown would 'undermine' Biden admin's economic 'progress': Yellen

Treasury Secretary Janet Yellen on Friday warned that economic progress could be negatively impacted by a government shutdown through the halting of key programs for small businesses and children.

Yellen, speaking at the Port of Savannah in Georgia, urged Republicans in the House to adhere to a budget deal agreed to in May in order to prevent another shutdown, which would undermine economic progress, Reuters reported.

"The failure of House Republicans to act responsibly would hurt American families and cause economic headwinds that could undermine the progress we’re making," Yellen said.

The shutdown could begin as soon as Sunday, as the new fiscal year starts without new spending legislation from Congress.

"A shutdown would impact many key government functions from loans to farmers and small businesses, to food and workplace safety inspections, to Head Start programs for children," Yellen said. "And it could delay major infrastructure improvements."

Head Start programs, of which many are located in poor communities, serve thousands of children and would immediately lose federal funding if a shutdown occurs. Lawmakers have until Saturday to reach a deal, otherwise the shutdown will commence at 12:01 a.m. ET Sunday.... (Read more)

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