Yellen warns of ‘catastrophe’ if debt limit not raised

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — Treasury Secretary Janet Yellen is warning that the U.S. faces “economic catastrophe” if Congress and the White House don’t take action to raise the federal debt limit. Yellen made the remark Tuesday during an otherwise optimistic speech about the direction of the country. 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.