Yellen Says Breaching Debt Limit Would Be ‘Catastrophic’

Treasury Secretary Janet Yellen told CNBC that she believes the economy would fall into a recession if Congress fails to address the borrowing limit before an unprecedented default on the U.S. debt.

Said Yellen: “I do regard Oct. 18 as a deadline. It would be catastrophic to not pay the government’s bills, for us to be in a position where we lacked the resources to pay the government’s bills.”