A failure by Congress to increase US borrowing authority by August 2 would have a “significant and unpredictable” impact on capital markets and the US economy, Barack Obama has warned.
“We don’t know how capital markets will react,” the US president said on Wednesday. “The headwinds we are already experiencing will get worse.”
The remarks at Mr Obama’s first press conference since March came as the International Monetary Fund said financial markets would face a “severe shock” if the US did not move quickly to increase its borrowing authority.
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