INTERNATIONAL

IMF warns against a government shutdown in the US, citing the damage to the economy

The U.S. government’s impending shutdown, according to the International Monetary Fund, poses a “avoidable risk” to the economy of the country. The IMF encouraged the parties to come to an agreement on federal funding continuation.


IMF spokesman Julie Kozack told reporters at a routine briefing, “We certainly are urging the parties to come together to reach a consensus and find a way forward.” “We do see a shutdown as a risk for the US economy that can be avoided.”
To prevent the fourth round of government shutdowns in the last ten years, Congress must pass legislation that Democratic President Joe Biden can sign into law by Saturday night (0400 GMT). Otherwise, hundreds of thousands of federal employees will be furloughed.

Republicans in the House, who now have a 221-212 majority in the chamber, have rejected the spending limits for fiscal year 2024 that were agreed upon by McCarthy and Biden in May.

In addition to declining to elaborate on the possible effects of a shutdown on the American economy, Kozack also refrained from commenting on the United Auto Workers’ strike against the Big Three Detroit automakers.

 

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