Yellen: U.S. default would be economic and financial "catastrophe"

Political brinkmanship over raising the U.S. debt ceiling risks "serious economic costs" even without the "catastrophe" of a default, Treasury Secretary Janet Yellen warned Thursday at Group of Seven finance talks in Japan.

Hours earlier, former president Donald Trump urged Republican legislators to trigger the first-ever U.S. debt default by refusing to lift the limit if Democrats don't agree to spending cuts.

President Biden has threatened to call off his upcoming trip to Asia, including in-person attendance at next weekend's G-7 summit, if the deepening standoff isn't resolved soon.