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.”
The fund issued the warning in the concluding statement of its article IV consultation, the IMF’s assessment of countries’ economic and financial developments following meetings with lawmakers and public officials.
Read More : IMF Calls on US to Increase or Suspend Debt Cap, Warns of Avoidable Risks