US Treasury Sec Yellen urges to raise debt limit once again to avoid ‘catastrophe’

US Treasury Secretary Janet Yellen renewed her call for Congress to raise or suspend the debt ceiling sometime in October, Bloomberg reported, citing her editorial op-ed in the Wall Street Journal (WSJ).

Key quotes

“The overwhelming consensus among economists and Treasury officials of both parties is that failing to raise the debt limit would produce widespread economic catastrophe.”

A US default “would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency,” throw the US into recession and leave it a “permanently weaker nation.”

“Neither delay nor default is tolerable” and lawmakers must act quickly.”

Market reaction

Markets are in a risk-off mood, thanks to the looming Fed’s tapering plan and China’s Evergrande risks, with the US dollar sitting at monthly tops near 93.35, as of writing.