Yellen Says Default Would Hurt US International Leadership

The transcript discusses the urgent need for the US Congress to address the debt limit to avoid a default, which could lead to severe economic consequences, including job losses, reduced household incomes, and deteriorating credit markets. A default would also threaten global economic stability and US leadership. Historical instances, like in 2011, show that even the threat of default can harm the economy. Congress has historically raised or suspended the debt limit multiple times, and it is urged to do so again to prevent a crisis.

What are the potential effects on households and businesses if the debt limit is not addressed?

What does the text suggest about the relationship between debt limit brinksmanship and economic costs?