"There would be very serious repercussions not only for the United States but also for the global economy in the event of a default on U.S. debt," International Monetary Fund communications director Julie Kozack said in a telephone news conference.
"We strongly encourage the parties in the United States to come together to reach consensus to resolve this issue urgently," she added.
Among the impacts, Kozack cited "higher interest rates, broader instability and economic spillovers."
Democrats and Republicans are engaged in a tug-of-war over raising the U.S. debt ceiling, a legislative maneuver essential to ensure that the world's largest economy can continue to borrow and pay its bills, officials and creditors.
Without an agreement, the world's largest economy would find itself, potentially as early as June 1, in default, an unprecedented situation.
The US © debt ceiling / AFP
President Joe Biden, who for the moment excludes budget cuts, accusing Republicans in Congress of holding the economy "hostage", received Wednesday at the White House the leaders of both sides, and a new meeting is scheduled for Friday.
Former Republican President Donald Trump, a candidate in the 2024 election, on Wednesday urged Republican elected officials to "cause a default", if the Democrats do not concede "massive cuts". However, he said the default would probably be avoided, predicting that the Democrats would "give in" on the file.
But Joe Biden's economy and finance minister, US Treasury Secretary Janet Yellen, then issued a warning. It considered that only flirting with default, pushing negotiations to their limits "can lead to significant economic costs".
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