“We again call on all parties to sit down together at the table, reach a consensus and resolve the issue as quickly as possible,” said Julie Kozak, a spokeswoman for the international financial institution, during a press conference in Washington yesterday.
The International Monetary Fund (IMF) warned on Thursday that a default by the US federal government would have a “severe impact” on the global economy.
“We again call on all parties to sit down together at the table, reach a consensus and resolve the issue as quickly as possible,” said Julie Kozak, a spokeswoman for the international financial institution, during a press conference in Washington yesterday.
Democrats and Republicans have been at loggerheads lately over raising the U.S. debt ceiling, a congressional decision absolutely necessary for the world’s largest economy to be able to pay its bills, its workers and its creditors.
The amount that the federal government can borrow ($31.4 trillion) has already been covered, and the Democratic administration is dealing with the problem with various maneuvers. Republicans require drastic cuts in public spending to agree to its increase, with US President Joe Biden so far rejecting the connection of the two issues but saying he is willing to discuss fiscal policy.
The meeting scheduled for later today between the head of state and Congress leaders has been postponed until next week.
In the event that this much-discussed “limit” is not raised by Congress, Mr. Biden’s Treasury Secretary, Janet Yellen, warns that the country may be forced to declare a default on June 1, something unprecedented.
Source :Skai
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