Treasury Secretary Janet Yellen has warned of the economic consequences of failing to raise the debt ceiling in the United States.

Treasury Secretary Janet Yellen has warned of the economic consequences of failing to raise the debt ceiling in the United States.

She emphasized the importance of Congressional action to avoid a potential "steep economic downturn."

The debt ceiling is a legal limit on the amount of money the United States government can borrow to pay its bills and fund its programs.
The current debt ceiling is $28.5T, but the United States is approaching this limit and may be forced to default on its debts without Congressional action.
Yellen has called on Congress to raise the debt ceiling, warning that failure could trigger a recession and cause significant harm to the global economy.
The secretary has also emphasized the importance of responsible fiscal policy, including efforts to reduce the federal deficit and manage government spending.