IMF: US should consider replacing debt ceiling with automatic adjustment mechanism

Eren Sengezer FXStreet

Gerry Rice, Director of the Communications Department at the International Monetary Fund (IMF), said on Thursday that it is important for the US government to find a debt limit solution that avoids a "counterproductive brinksmanship," per Reuters.

"The US should consider replacing debt ceiling with automatic adjustment mechanism or clear medium-term fiscal objective," Rice added.

Market reaction

This report doesn't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was down 0.52% on the day at 4,457.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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