Yellen warns of economic disaster if US defaults on debt and urges action without conditions.

US Treasury Secretary Janet Yellen warned that failure by Congress to raise the government's debt ceiling would trigger an "economic catastrophe" that would send interest rates higher for years to come. Yellen said a default on U.S. 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.