Ms Yellen said there was nothing more harmful to the dollar than failing to raise the debt ceiling, the US was recovering and the debt ceiling crisis would be "huge" self-harm. Failure to raise the debt ceiling will lead to a financial crisis and soaring yields. Default would be a man-made crisis and self-inflicted damage. The interest paid by Americans will rise as the cost of borrowing government bonds rises. If Congress does not raise the debt ceiling, there will be a financial crisis and disaster. Fear that this will undermine confidence in the dollar as a reserve currency. The inflation rate is expected to be close to 4% by the end of the year; it is clear that the inflation rate will exceed 2% this year.