US government shutdown would 'undermine' US economic progress, Yellen says

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US government shutdown would 'undermine' US economic progress, Yellen says
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A government shutdown that could start this weekend would 'undermine' U.S. economic progress by idling key programs for small businesses and children, and could delay major infrastructure improvements, U.S. Treasury Secretary Janet Yellen said on Friday.

partisan spending cuts and the Senate advanced separate legislation to temporarily extend spending.

"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. And it could delay major infrastructure improvements," she said, adding that such investments boost economic growth. Brainard told CNBC that avoiding a lapse in government funding was "completely in the hands of the House, the House Republicans in particular," and that risks to the economy include active military service members going without pay, air traffic delays and poor Americans being unable to access government benefits.

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