Treasury Secretary Janet Yellen told U.S. financial regulators Thursday that if Congress fails to address the nation’s debt ceiling, there may be “financial stability implications.”
The fallout from not raising the limit in a “timely manner” was among topics raised at a private meeting of the Financial Stability Oversight Council, the Treasury Department said in a statement. Yellen has campaigned for congressional action and has warned that the Treasury would probably reach the borrowing limit sometime next month.
The council of regulators, including the chiefs of the Federal Reserve, Securities and Exchange Commission and the Office of the Comptroller of the Currency, is responsible for heading off risks that could spark another financial crisis. The group also discussed the commercial real estate market and heard a presentation from the Federal Reserve Bank of New York on industry trends and “the exposures of various financial sectors to commercial real estate and potential risks.”
Under orders from President Joe Biden, the council is also working on a report assessing how climate change could shake the financial system, which is due in November.