Yellen warns of dire consequences if US defaults on debt.

US Treasury Secretary Janet Yellen warned that failure by Congress to raise the government’s debt ceiling – and the resulting default – would trigger an “economic catastrophe” that would send interest rates higher for years to come. Yellen said a default on United States debt would result in job losses, while driving household payments on mortgages, auto loans and credit cards higher. She said it was a “basic responsibility” of Congress to increase or suspend the $31.4 trillion borrowing cap, warning that a default would threaten the economic progress that the United States has made since the COVID-19 pandemic.