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Economics

IMF Warns US Default Would Have ‘Serious Repercussions’ Globally

  • Crisis lender urges consensus to urgently address debt ceiling
  • Higher interest rates could squeeze countries in debt distress
A US default could raises “very serious repercussions” for the global economy. 

A US default could raises “very serious repercussions” for the global economy. 

Photographer: Eric Lee/Bloomberg
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The International Monetary Fund warned of “very serious repercussions” for the US and the global economy if the nation defaults on its debt, urging Democrats and Republicans to reach a consensus on the looming debt ceiling.

Potential consequences from a US default would include higher interest rates and broader instability, IMF spokeswoman Julie Kozack said in a briefing Thursday. That would add to the shocks of the past few years, she said, including the Covid-19 pandemic and war in Ukraine.