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IMF says U.S. should avoid debt limit ‘brinkmanship,’ consider replacement

September 16, 2021 by David Barret Leave a Comment

September 16, 2021

WASHINGTON (Reuters) – The International Monetary Fund said on Thursday that it was important for the U.S. government should find a solution to a looming debt limit deadline to avoid “counterproductive brinkmanship” and that Washington should consider replacing the federal borrowing cap.

IMF spokesman Gerry Rice told a regular press briefing that the United States should consider alternatives such as an automatic adjustment mechanism or a clearly defined medium-term fiscal objective. Legislative action by Congress is now required to raise or suspend the limit.

U.S. Treasury Secretary Janet Yellen has warned that the federal government will exhaust its current cash and borrowing capacity under extraordinary debt measures in October, leaving it unable to pay all of its obligations.

(Reporting by David Lawder)

Source Link IMF says U.S. should avoid debt limit ‘brinkmanship,’ consider replacement

David Barret
David Barret

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