IMF: Not Raising Debt Limit Will Lead To "Severe Shock"

The Hill reports:

The U.S. should raise its $14.3 trillion debt ceiling to avoid “a severe shock” to the global economy, the International Monetary Fund has warned.

In an annual report card on U.S. economic policy made public on Wednesday, the IMF said the debt ceiling should be raised as soon as possible to avoid damage to the economy and world financial markets.

The warning in the report, which was sent to the U.S. government on June 20, comes at a turning point for negotiations on raising the debt ceiling. Talks led by Vice President Biden hit an impasse last week over GOP objections to including any raised tax revenue in a deal to reduce deficits.