UPDATE 1-Yellen urges Congress to raise debt ceiling without conditions

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UPDATE 1-Yellen urges Congress to raise debt ceiling without conditions

WASHINGTON Reuters - U.S. Treasury Secretary Janet Yellen urged members of the U.S. House of Representatives to raise the federal debt ceiling without conditions, warning that a default on U.S. debt would cause an economic and financial catastrophe. In budget testimony before the Republican-controlled House Ways and Means Committee, Yellen said that failure to increase the $31.4 trillion borrowing cap would threaten the economic progress the United States has made since the COVID-19 epidemic.

In prepared remarks, Yellen said that in my assessment, and that of economists across the board, a default on our debt would cause an economic and financial catastrophe. I urge all members of Congress to come together to address the debt limit without conditions and without waiting until the last minute.

Some Republicans want to spend concessions from U.S. President Joe Biden in exchange for raising the debt ceiling. Yellen argues that it is about making good on Congress' past spending decisions, and that he has refused to negotiate over raising the debt ceiling.