Washington: The risk of US default has increased, the IMF has sounded the alarm.
Reuters According to the International Monetary Fund has said on Thursday that if the US economy falls, then it will have serious consequences on the world economy.
IMF spokeswoman Julie Kozek said the risk of a US default has increased due to the rapid growth of domestic debt.
The IMF spokesperson called on the United States to unite and create a consensus to solve the economic problems and resolve the issue by taking major decisions as soon as possible.
The IMF says that a default on the US debt due to the US’s failure to raise the debt ceiling would have “very serious consequences” not only for the US economy but also for the global economy.
An IMF spokesman said US officials need to be alert to new vulnerabilities in the US banking sector, including regional banks, that could emerge during the adjustment in a very high interest rate environment.
U.S. Treasury Secretary Janet Yellen also urged Congress on Thursday to raise the debt ceiling, warning that a U.S. default would trigger an “economic and financial disaster,” triggering a global economic meltdown. However, there is a risk that it will weaken America’s ability to provide global leadership.