During a press conference in Niigata, Japan, Yellen stated that this crisis would be self-inflicted and implored Congress to act swiftly on the issue, stating that a default would be unthinkable.

US Treasury Secretary Janet Yellen Urges Congress to Act Swiftly to Prevent Default on Debt

Janet Yellen, the secretary of the U.STreasury, has urged Congress to act swiftly on the issue of raising the debt ceiling in order to prevent a possible debt default that would be detrimental to the economy. During a press conference in Niigata, Japan, prior to the G7 meeting of finance ministers and central bank governors, Yellen warned once more about the catastrophic consequences of such an event.

ALSO READ: A report states global regulators will discuss crypto at G7.

Yellen declared: 

There is no good alternative that will save us from catastrophe. I don’t want to get into ranking which bad alternative is better than others, but the only reasonable thing is to raise the debt ceiling and to avoid the dreadful consequences that will come.

In addition, Yellen stated that she believes this crisis is self-inflicted and should not be occurring. She elaborated:

There is no good reason to generate a good crisis of our own making. The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960. I urge it to act quickly to do so once again.

ALSO READ: US Treasury Crypto Research Begins

Defaulting Would Be ‘Unthinkable’

Yellen had previously warned of the catastrophic effects a U.S. default on its debt would have on the national economy and global markets. This time, Yellen also addressed this issue, stating that the consequences would be unthinkable.

She elaborated:

The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable. America should never default.

Bipartisan negotiations on the debt limit issue have been unsuccessful, as the Republican party demands a series of cost cuts that would affect Democratic spending in critical areas, such as healthcare and social benefits. This Friday, negotiations are scheduled to resume, and Yellen is "very optimistic" that the parties will be able to resolve their differences and raise the debt ceiling.