US President Barack Obama
Source: Press TV
The International Monetary Fund (IMF) has urged US lawmakers to swiftly increase the country's debt limit to avoid a severe shock to a still fragile economy.
In its annual review of the US economy, the IMF on Wednesday stated that the country's growing national debt is unsustainable, Reuters reported.
It further urged the US to increase its existing USD 14.3 trillion borrowing limit by August 2 in order to avoid a default on its loans.
"And of course, the federal debt ceiling should be raised expeditiously to avoid a severe shock to the economy and world financial markets," the IMF said.
Moreover, the IMF suggested that spending cuts and tax increases should be part of the plan.
Republicans and Democrats, however, are currently at odds on how to deal with the matter. So far, little willingness has been shown on either side to faster reach an understanding.
During a press conference on Wednesday, US President Barack Obama predicted that a deal with the Republicans would soon be reached.
Meanwhile, according to a report released on Wednesday, the US has so far spent at least USD 3.7 trillion in its wars in Afghanistan, Iraq and Pakistan. And it might end up spending as much as USD 4.4 trillion.
The report also questioned what the US has gained from this multi-trillion dollar investment.