WASHINGTON — Leaders of financial groups and Treasury Secretary Jack Lew warned Thursday that brinkmanship over the debt limit is already hurting the financial markets and that a default would have catastrophic impacts domestically and globally, making it harder to deal with long-term U.S. debt issues.

They issued their warnings in hearings held by the Senate Finance and Banking Committees as House Speaker John Boehner, R-Ohio, said Republicans would propose a short-term increase in the $16.7 trillion debt limit for six weeks. Republicans want to tie the increase to an agreement by President Obama to negotiate a longer term budget deal.

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