Yellen and President Joe Biden met with senior executives from JPMorgan Chase, Intel, Nasdaq, Raytheon, Citi and Deloitte last week to discuss the “catastrophic impact” the country has of not paying its bills if the debt ceiling is not raised .
Host George Stephanopoulos suggested invoking Amendment 14 to justify further borrowing. “The text is pretty clear,” he said. “The validity of the United States’ national debt should not be questioned.”
However, Yellen said the US should never be in that position. “It would be completely irresponsible and a self-inflicted wound that would affect businesses and households as well as the global economy and US status in the world,” she said. “We should never be in this position.”
In the president’s pending proposals for infrastructure spending, Senator Joe Manchin (DW.Va.) suggested testing some programs, but Yellen warned there would be a compromise. Universal programs tend to be popular, but there is an argument that “the highest-income Americans may not benefit from a program most needed by lower-income ones,” she said.
Another historic deal that Yellen is “confident” of will include a minimum global tax of 15 percent in the presidential reconciliation package, currently supported by 130 nations.
“It is … very important for American workers to stop the decades-long race to the bottom in corporate taxation, as countries seek to lower their taxes to attract our companies, to make it more difficult to get jobs in the United States keep ”, called Yellen.