Fed's Williams: risks around U.S. debt ceiling debate "enormous"

Reuters

SAN DIEGO, Oct 3 (Reuters) - Courting a default on U.S. debtobligations by not raising the nation's borrowing limit hascreated a "very frightening" situation which could do dramaticharm to the economy, a senior Federal Reserve official said onThursday.

"The risks around the debt ceiling are enormous," said SanFrancisco Federal Reserve President John Williams.

"Actually risking the U.S. Treasury market, and the globaltrust in the U.S. Treasury market, is very frightening, and Ihope very sincerely we don't get to that point," he told anaudience after delivering a speech here.

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