Yellen warns US default would be ‘a catastrophe’ as G7 finance ministers meet

Treasury Secretary Janet Yellen takes questions from journalists during a press conference in Japan (Shuji Kajiyama/AP)

The financial leaders of the Group of Seven wealthy nations are meeting in Japan as a stand-off over the US debt ceiling and potential default looms as one of the biggest threats to the global economy.

Treasury Secretary Janet Yellen said one of her priorities in Niigata, a port city on the Japan Sea coast, would be to emphasise the importance of resolving the stand-off over the national debt in the world’s largest economy.