IMF urges US to raise debt ceiling

The IMF has urged the US government to raise its debt ceiling to avoid "global repercussions" for financial markets and a debt "shock".

The organisation said the US must raise the debt ceiling as part of a "substantial and durable fiscal consolidation effort" while ensuring the economic recovery remains on track. "The federal debt ceiling should be raised expeditiously to avoid a severe shock to the economy and world financial markets," said the IMF in a concluding statement of its latest policy statement, the 2011 Article IV Mission. "With public debt on an unsustainable trajectory, the priority is to stabilise the debt ratio by mid-decade and gradually reduce it afterwards, consistent with the administration's objec...