IMF on major consequences of US debt default

In its latest World Economic Outlook report, the International Monetary Fund (IMF) warns of the consequences of the prolonged political standoff in the US. "Failure to lift the debt ceiling would be a major event. Prolonged failure, would almost surely derail the US recovery," says IMF. However, the effect of any failure to repay the debt would be felt right away, leading to potentially major disruptions in financial markets, both in the United States and abroad, the bank adds.