US Treasury Sec. Yellen: Failure to raise debt limit could cause recession

US Treasury Secretary Janet Yellen told CNBC on Tuesday that a failure to raise the debt limit could hurt the reserve status of the dollar and cause a recession, as reported by Reuters.

Yellen further added that she regards October 18 as the debt limit deadline and said that it's up to US House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer to figure out out how to raise the limit in Congress.

Market reaction

These comments don't seem to be having a noticeable impact on the USD's performance against its rivals. As of writing, the US Dollar Index was up 0.13% on the day at 93.92.