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

SAN DIEGO, Oct 3 (Reuters) - Courting a default on U.S. debt obligations by not raising the nation's borrowing limit has created a "very frightening" situation which could do dramatic harm to the economy, a senior Federal Reserve official said on Thursday.

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

"Actually risking the U.S. Treasury market, and the global trust in the U.S. Treasury market, is very frightening, and I hope very sincerely we don't get to that point," he told an audience after delivering a speech here.