The U.S. Treasury Secretary argues if a default were to occur, it would result in job losses, while driving credit repayments higher

 
U.S. Treasury Secretary Janet Yellen has warned if Congress fails to raise the government’s debt ceiling, this would trigger an “economic catastrophe”.

Yellen argues if a default were to occur, it would result in job losses, while driving credit repayments on homes and cars much higher.

She said it was a “basic responsibility” of Congress to increase or suspend the $31.4 trillion borrowing cap.

“A default on our debt would produce an economic and financial catastrophe,” Yellen told Sacramento Metropolitan Chamber of Commerce members. “A default would raise the cost of borrowing into perpetuity.

“Future investments would become substantially more costly.

“Congress must vote to raise or suspend the debt limit. It should do so without conditions. And it should not wait until the last minute.”