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Treasury’s Borrowing Committee Warns Yellen of Debt-Limit Risks

Janet Yellen

Janet Yellen

Photographer: Greg Nash/The Hill/Bloomberg

The leaders of the committee of bond dealers and investors that regularly advises the U.S. Treasury Department stressed to Secretary Janet Yellen on Tuesday their concern over potentially dire risks to the financial system if Congress fails to lift or re-suspend the debt limit.

The U.S. debt cap kicked in August after a prior two-year suspension ended, forcing the Treasury to tap extraordinary measures to avert breaching its borrowing capacity. Treasury Secretary Yellen has said that government will otherwise run out of money to pay its bills sometime in October if Congress doesn’t act.