With less than five days left for the Congress to increase the debt ceiling in the absence of which the US would default on its financial obligations, the World Bank chief has said that America is headed towards a very dangerous moment.
"We are now five days away from a very dangerous moment," World Bank President Jim Young Kim told reporters at the conclusion of the annual plenary meeting of the International Monetary Fund and the World Bank in Washington.
Jim urged US policymakers to quickly come to a resolution before they reach the debt ceiling deadline.
"The closer we get to the deadline, the greater the impact will be for the developing world. Inaction could result in interest rates rising, confidence falling, and growth slowing," he said yesterday.
"If this comes to pass, it could be a disastrous event for the developing world, and that in turn will greatly hurt the developed economies as well," Jim said.
