https://sputnikglobe.com/20230526/failure-to-reach-us-debt-ceiling-deal-would-cause-contraction-in-us-world-economies---imf-1110616778.html
Failure to Reach US Debt Ceiling Deal Would Cause Contraction in US, World Economies - IMF
Failure to Reach US Debt Ceiling Deal Would Cause Contraction in US, World Economies - IMF
Sputnik International
Failure by the Biden administration and Congressional leaders to reach an agreement on the nation's debt ceiling would cause contraction in the US and global economies, IMF managing director said.
2023-05-26T19:01+0000
2023-05-26T19:01+0000
2023-05-26T19:01+0000
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kristalina georgieva
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"Inevitably, we would be at the time of contraction in the US and in the world economy and that would come as a shock, upon shock upon shock," Georgieva told reporters.She also argued that the US national debt remains sustainable and the American economy has a significant margin of endurance even amid the risk of a first-ever default at the beginning of June.The United States currently finds itself in a bit of a pickle as the Republican-controlled House of Representatives has so far declined to extend the country's debt ceiling - the debt ceiling that has already been reached - as the Republican Party tries to force the Democrats to agree to big budget cuts to which the latter would otherwise object.Unless US lawmakers manage to work out a deal on this matter soon, the United States may end up defaulting on its debt.
https://sputnikglobe.com/20230526/biden-mccarthy-near-debt-ceiling-deal-as-possible-default-looms-with-june-1-deadline-1110594657.html
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Failure to Reach US Debt Ceiling Deal Would Cause Contraction in US, World Economies - IMF
WASHINGTON (Sputnik) - Failure by the Biden administration and Congressional leaders to reach an agreement on the nation's debt ceiling would cause contraction in the US and global economies, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Friday.
"Inevitably, we would be at the time of contraction in the US and in the world economy and that would come as a shock, upon shock upon shock," Georgieva told reporters.
She also argued that the US national debt remains sustainable and the American economy has a significant margin of endurance even amid the risk of a first-ever default at the beginning of June.
"The bottom line for us is the US debt is sustainable. The US has a long way to go before it gets into the territory that should make everybody worry, but being sustainable doesn't mean that it is optimal," Georgieva insisted.
The United States currently finds itself in a bit of a pickle as the Republican-controlled House of Representatives has so far declined to extend the country's debt ceiling - the debt ceiling that has already been reached - as the Republican Party tries to force the Democrats to agree to big budget cuts to which the latter would otherwise object.
Unless US lawmakers manage to work out a deal on this matter soon, the United States may end up defaulting on its debt.
