IMF Chief Warns of Global Economic Turbulence Amid US Debt-Ceiling Impasse

(MENAFN) The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has expressed her concern over the ongoing debt-ceiling impasse between the Biden administration and top Republican figures in Washington. Georgieva emphasized that a potential United States default would have far-reaching consequences, causing significant disruptions to the global economy.

During a press conference held on Friday following the IMF's Article IV consultation with US economic figures, Georgieva underscored the importance of the United States Treasury market as a stabilizing force for the global financial system. She highlighted that any disruption in this market would create uncertainty and volatility in the world economy, comparing it to navigating uncharted and turbulent waters.

Georgieva further stated that the current impasse has already led to widespread anxiety around the world, which she believes should not have been a problem in the first place. She emphasized that a United States default would inevitably trigger economic contractions in both the United States and globally, exacerbating the existing challenges faced by financial institutions. These challenges include the lingering impacts of the Covid-19 pandemic and vulnerabilities associated with Russia's military actions in Ukraine.

The IMF managing director's remarks underscore the potential risks and adverse consequences of a United States default on the global stage. The IMF, as a key international financial institution, closely monitors and assesses the economic developments and policies of its member countries, and Georgieva's comments reflect the organization's concerns about the impact of the debt-ceiling impasse on the world economy.



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