US impasse makes global finance officials jittery
WASHINGTON (AP) - Concerns that the political impasse in American government will derail a fragile global economic recovery will dominate a meeting of world financial leaders in Washington this week.
In the run-up to meetings of the International Monetary Fund, World Bank and the Group of 20 major economies, global financial leaders have been sounding loud warnings about the possibility of a US debt default as well as potential damage from the partial government shutdown if it continues.
These new concerns are layered on top of ongoing anxiety over an expected reduction in the central bank's bond-buying programme to stimulate the economy. The prospect of that reduction has put significant pressure on developing country markets even before it has actually begun.
This is especially worrying at a time when the IMF and other economic experts are counting on a strengthening US economy to help carry a still-fragile global economic recovery.