Yellen Urges Action on Debt Ceiling to Avoid Catastrophic Default

US Treasury Secretary Janet Yellen warned Congress that failing to raise the debt ceiling could lead to a financial catastrophe, with broken markets, disrupted services, and an economic downturn as bad as the Great Recession. Yellen urged Congress to act immediately to prevent a default, which could cause widespread suffering as Americans lose income and lead to a recession that destroys many American jobs and businesses. The debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default.