IMF Urges US to Raise or Suspend Debt Cap, Says Risk Avoidable
- Brinkmanship would create further avoidable systemic risk
- IMF chief sees US interest rates staying higher for longer
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The International Monetary Fund urged the US to immediately raise or suspend its debt limit, and warned that getting “stubbornly high” inflation back to the Federal Reserve’s 2% goal will require elevated interest rates through much of 2024.
“Brinkmanship over the federal debt ceiling could create a further, entirely avoidable systemic risk to both the US and the global economy at a time when there are already visible strains,” the IMF said in a statement Friday. “To avoid exacerbating downside risks, the debt ceiling should be immediately raised or suspended by Congress.”