Us Treasury Secretary Yellen Yellen told US financial regulators on Thursday that if Congress failed to resolve the debt ceiling, it could have an "impact on financial stability".
The Treasury Department said in a statement that the impact of failing to raise the debt ceiling "in a timely manner" was one of the issues raised at a private meeting of the Financial Stability Supervisory Board. Ms Yellen called on Congress to take action and warned that the debt ceiling could be reached sometime next month.
The committee includes the heads of the Federal Reserve, the Securities and Exchange Commission and the Office of the Comptroller of the currency. The committee also discussed the commercial real estate market and was briefed by the New York Fed on industry trends and "exposure of various financial sectors to commercial real estate".
At the request of President Joe Biden, the committee is also preparing a report to assess how climate change affects the financial system, which will be submitted in November.