Yellen warns of ‘catastrophic’ effects of not raising debt limit

Treasury secretary says failing to raise ceiling would be a “manufactured crisis”

Janet Yellen
Janet Yellen

Failing to raise the debt ceiling in the US could bring “catastrophic” consequences, Janet Yellen told the Senate banking committee on September 28.

Yellen, the secretary of the Treasury and a former Federal Reserve chair, warned that a failure to raise the federal debt limit would have “catastrophic economic consequences”.

She said her department believes it “will likely exhaust its extraordinary measures by October 18”, leaving it with scant reserves. This would disrupt global financial

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