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IMF Head Warns American Consumers Would Suffer If US Defaulted

  • Georgieva wades into debt-limit debate unfolding in Washington
  • Calls on China to change creditor policy in emerging countries
Kristalina Georgieva

Kristalina Georgieva

Photographer: Stefan Wermuth/Bloomberg
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A US debt default would cause a spike in borrowing costs that squeezes American consumers as well as significant harm to the world economy, International Monetary Fund Managing Director Kristalina Georgieva said.

The IMF head’s comments add to warnings about the risks of a market meltdown if Congress in Washington fails to resolve a standoff between Republicans and President Joe Biden over increasing the debt ceiling.