1/20, 8:51 PM (Source: TeleTrader)
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Yellen warns of global fin crisis if debt ceiling not agreed

United States Treasury Secretary Janet Yellen underlined on Friday that the inability of Congress to reach a consensus on a debt ceiling could drive the US economy into a recession and trigger a worldwide financial crisis.

"It would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world. And Americans – many people would lose their jobs and certainly their borrowing costs would rise," the Treasury secretary told CNN.

The debt ceiling reached the $31.4 trillion threshold the day before, forcing the Treasury department to take "extraordinary measures" by stopping investments in two government retirement funds.

Baha Breaking News (BBN) / AB