IMF calls for US to raise debt ceiling and cut spending

 

The IMF has called on US politicians to act urgently to raise the country's debt ceiling.

The IMF also called for a "complete solution" to reduce the US deficit over the medium term.

Without this, IMF directors warned, the markets lose confidence in Washington's ability to pay its debts.

US has not capacity to get more debt because the US risks default on its $14.3tn (£8.7tn) debt.

"These risks would also have significant global repercussions, given the central role of US Treasury bonds in world financial markets," the IMF said.