Yellen warns of ‘economic chaos’ unless Congress raises the debt ceiling

Treasury Secretary Janet Yellen on Sunday said that failure to raise the debt ceiling will cause a “steep economic downturn” in the U.S., and she reiterated her warning that the Treasury Department may run out of measures to pay its debt obligations by June.

“Our current projection is that in early June, a day will come when we’re unable to pay our bills unless Congress raises the debt ceiling, and it’s something I strongly urge Congress to do,” Yellen told ABC’s “This Week.”

Yellen said the U.S. has already been using “extraordinary measures” to avoid default, and it’s not something the Treasury Department can continue to do. She said Congress needs to take action to avoid “economic calamity.”

“It’s widely agreed that financial and economic chaos will ensue,” Yellen said.

Lawmakers have been trying to find a path forward to raise or suspend the debt ceiling, which would enable the U.S. to pay its bills on time. But they’re currently at an impasse, raising the prospect of default.