Biden, Yellen warn of ‘catastrophe’ if debt limit not raised

By FATIMA HUSSEIN and CHRIS MEGERIAN
Associated Press

WASHINGTON (AP) — President Joe Biden and Treasury Secretary Janet Yellen are warning of a potential economic crisis if Congress and the White House fail to raise the federal debt ceiling. They made the remarks during speeches Tuesday at the National Association of Counties. Yellen notified Congress last month that the U.S. Treasury Department has resorted to “extraordinary measures” to avoid default on the nation’s $31.4 trillion borrowing authority. But the extraordinary measures would likely run out — and put the U.S. at risk of default — sometime around early June. House Republicans are demanding spending cuts as a condition for raising the debt limit. Biden wants the limit increased without conditions.