US Treasury Secretary Janet Yellen, in prepared remarks, said she believes the US is on a path to lowering inflation while maintaining a healthy jobs market
AFP

U.S. Treasury Secretary Janet Yellen on Friday urged lawmakers to support a Senate bill that would fund the government temporarily and prevent what she called a "dangerous and unnecessary" shutdown.

"It is crucial that House Republicans also do their jobs and move quickly to keep the government open and adequately fund key priorities, as they agreed to in May," Yellen said in a speech in Savannah, Georgia. "The failure of House Republicans to act responsibly would hurt American families and cause economic headwinds that could undermine the progress we're making."

The Treasury Secretary mentioned unemployment near historic lows and a slowing inflation as examples of economic progress.

The suspension of non-essential government activities is looking increasingly likely as Congress fails to pass bills to fund the government in the fiscal year that starts Oct. 1.

The House of Representatives rejected Friday a stopgap measure championed by Republican Speaker Kevin McCarthy that would fund the government temporarily. Twenty-one members of his own party joined Democrats in opposition to the bill.

If Congress doesn't approve a law to be signed by President Joe Biden by the end of Saturday, non-essential government activities will be suspended the next day. That includes the closure of national parks, suspension of payment of federal employees, with potential impacts on Social Security and even air travel.

The Senate is moving forward with an alternative stopgap measure, supported by both Democrats and Republicans. McCarthy rejects the idea of bringing that bill to a vote in the House.