US Default Threatens Serious Repercussions for Investors and National Security.
The International Monetary Fund (IMF) has warned of “very serious repercussions” to both the U.S. and the global economy if the U.S. defaults on its debt obligations, which could be as soon as June 1. The IMF’s director of communications called on all parties to come together and resolve the matter as quickly as possible. The IMF cautioned that a U.S. default could lead to higher interest rates, broader instability, and economic repercussions. The U.S. Treasury may not be able to pay all of the government’s bills as early as June 1 “if Congress does not raise or suspend the debt limit before that time.”