(Washington Composite Electric) Gionerkeva, president of the International Monetary Fund (IMF), said the cost of debt defaults will lead to surge in borrowing costs, which will put pressure on American consumers and cause huge harm to the world economy.
Control the Republicans and President Biden of the House of Representatives in the US House of Representatives, and the market will face the risk of collapse if Congress cannot solve this deadlock.
Georkeva said in an interview broadcast on Sunday (February 5), a Broadcasting Corporation of the United States, stated that it is compared with the pain that may bring in breach of contract. Last year, the U.S. inflation rate reached a 40 -year high.The impact of the impact appeared sad.She said: "If the US defaults, the interest rate will be pushed up, which will be very harmful to American consumers." She hopes that the United States can avoid the crisis of debt defaults, and all parties can find a solution through dialogue.
U.S. Treasury Secretary Yellen said last month that if Congress failed to raise a legal debt limit of US $ 3.1.4 trillion (approximately $ 41.4 trillion) in time, the federal government could not repay the debt and would leadLosing work, the cost of lending will also rise.Powell, chairman of the US Federal Reserve, pointed out that the only way to avoid the country's facing debt defaults is that Congress increases its debt limit and allows the US government to repay debts at its due expiration.
Debt defaults will trigger US sovereign debt rating, weaken the US dollar as the status of global reserve currency, and may cause a global financial crisis.
