US Treasury Secretary Janet Yellen has warned that a US default on its debt will lead to "economic and financial catastrophe", stressing that raising or suspending the debt ceiling should be "unconditional".
The United States reached a $31.4 trillion borrowing threshold in January, prompting the Treasury Department to take extraordinary measures that would allow it to continue funding government activities. However, if Congress does not raise or suspend the debt ceiling before current instruments are exhausted, the government risks defaulting by July, with dire economic repercussions.
Among the potential fallouts are higher mortgages, car loans, and credit cards, Yellen said.
Source (Al-Raya Qatari Newspaper, Edited)
