Yellen hopeful of a solution to 'more difficult' debt ceiling showdown

US Treasury Secretary Janet Yellen has stated that the stand-off over raising the US debt ceiling is "more difficult" than in the past, but hopes a solution to prevent the first ever US default can be found. Yellen urged Congress to agree to raise the $31.4tn cap on federal borrowing to avoid an "economic and financial catastrophe". The US has to periodically raise its borrowing limit because the government spends more than it raises. However, Republicans want President Joe Biden to outline sweeping budget cuts if they are to agree to raising the limit, while Biden insists Congress has a constitutional duty to raise the limit without conditions.