Key facts
- US Treasury Secretary Janet Yellen believes a debt ceiling deal is possible.
- Yellen warned of catastrophic economic consequences if the US defaults.
- She urged Congress to act swiftly to raise the debt ceiling.
- The Treasury has implemented extraordinary measures to avoid default.
U.S. Treasury Secretary Janet Yellen said on Sunday that a deal to raise the nation's debt ceiling is possible, but warned that a default would have catastrophic economic consequences. Speaking on ABC's 'This Week,' Yellen reiterated that the Treasury has been using 'extraordinary measures' to avoid a default, but these measures will not last indefinitely. She stressed the urgency for Congress to reach an agreement to lift or suspend the debt limit, which she described as a critical step to ensure the stability of the U.S. economy and global financial markets. Yellen did not offer specific details on potential compromises but expressed optimism that lawmakers could find common ground. The Treasury has previously indicated that the nation could run out of cash to pay its bills as early as June 5 if Congress does not act.