IMF says looming shutdown of US govt poses avoidable risk to nation’s economy; urges parties to reach consensus

International Monetary Fund (IMF) has said a looming shutdown of the US government posed an avoidable risk to the nation’s economy. IMF spokesperson Julie Kozack also urged parties to reach consensus on continued funding for the federal government. To prevent the furloughs of hundreds of thousands of federal employees and the suspension of various essential services, including economic data releases and nutrition benefits, Congress needs to pass legislation that can be signed into law by President Joe Biden before midnight on Saturday. This would mark the fourth government shutdown in the past decade.

The political deadlock stemmed from bitter ideological differences among the Republicans in the House of Representatives. House Republicans have rejected spending levels for fiscal year 2024 set in a deal Speaker Kevin McCarthy had negotiated with Biden in May.