WASHINGTON—U.S. Treasury Secretary Janet Yellen warned county leaders on Tuesday that their residents could lose jobs and federal benefit payments if Congress allows the United States to default on payment obligations by failing to lift the federal debt ceiling.
Yellen, speaking to the National Association of Counties, offered no new details on when the U.S. Treasury may run out of cash and borrowing capacity without a debt limit increase. She has said the United States can pay its bills at least through early June by employing extraordinary cash management measures.
“In my assessment—and that of economists across the board—a default on our debt would produce an economic and financial catastrophe. Many of your residents could ultimately lose their jobs,” Yellen said….