Yellen warns delay in raising debt limit will slow economy

Treasury Secretary Janet Yellen is sounding an urgent call for Congress to raise the U.S. government’s borrowing limit, a day after Senate Republicans blocked consideration of a bill that would have done so

WASHINGTON -- Treasury Secretary Janet Yellen is sounding an urgent call for Congress to raise the government's borrowing limit, a day after Senate Republicans blocked consideration of a bill that would have done so.

Yellen is testifying Tuesday to the Senate Banking Committee at a hearing to update Congress on the impact of the vast financial support programs the government enacted after the viral pandemic paralyzed the economy 18 months ago.

If the debt limit isn't raised by Oct. 18, Yellen warned, “the full faith and credit of the United States would be impaired, and our country would likely face a financial crisis and economic recession."

In a separate letter she sent Tuesday to congressional leaders, Yellen also said that a prolonged battle over raising the limit could imperil the economy.