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US debt default may spark global downturn, treasury chief warns

US Treasury Secretary Janet Yellen warned on Thursday that the looming federal government default may spark a global downturn. "It would also risk undermining US global economic leadership and raise questions about our ability to defend our national security interests," Yellen said at a press conference in Niigata, Japan. She reiterated that the US Congress should address the $31.4 trillion federal debt limit as early as June 1 to avoid the default. "... default on US obligations would produce an economic and financial catastrophe," Yellen said. He urged Congress to raise the debt limit soonest. "There is no good reason to generate a crisis of our own making. The US Congress has raised or suspended the debt limit about 80 times since 1960. I urge it to act quickly to do so once again."

Source: Anadolu Agency