Failing to raise U.S. debt ceiling would lead to 'economic and financial catastrophe,' Yellen says

The U.S. authorities risks "economic and fiscal catastrophe" if the House fails to walk a measure to rise the $31.4 trillion indebtedness ceiling, Treasury Secretary Janet Yellen said connected Monday.

The state deed the statutory bounds past month, but Republican members of Congress are holding retired connected raising it to negotiate changes successful national spending rules with the White House earlier drafting a bill. The Treasury Department nether Yellen has taken several impermanent measures to assistance the authorities debar default.

"America has paid each of its bills connected clip since 1789, and not to bash truthful would nutrient an economical and fiscal catastrophe," Yellen told ABC's George Stephanopolous connected Monday. "And each liable subordinate of Congress indispensable hold to rise the indebtedness ceiling."

The Treasury Secretary said the House has ever fulfilled its work to rise the bounds though it has sometimes "gone up to the wire."

House Speaker Kevin McCarthy announced that helium volition present an code connected the indebtedness ceiling astatine 5:30 p.m. ET connected Monday. Talks betwixt McCarthy and President Joe Biden person continued amicably, but an statement has not been reached.

During the interview, Yellen besides praised the better-than-expected January occupation numbers and steadily decreasing ostentation — some are issues she said Biden volition code successful his State of the Union connected Tuesday.

"Last month, we created implicit 500,000 jobs, much than 12 cardinal since the President took office, and ostentation is coming down," she told Stephanopolous. "It remains excessively high, but it's been falling for the past six months."