Yellen has repeatedly urged Congress to act in a bipartisan manner to extend the U.S. government's borrowing authority or else risk dangerous economic consequences.

"Should it be done on a bipartisan basis? Absolutely. Now, if they're not going to cooperate, I don't want to play chicken and end up not raising the debt ceiling. I think that's the worst possible outcome," Yellen told The Washington Post on Sunday as she traveled to Dublin.

"If Democrats have to do it by themselves, that's better than defaulting on the debt to teach the Republicans a lesson," she added.