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US debt ceiling and its impact on the global economy

7:14 AM, Oct 14, 2013   |    comments
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WASHINGTON (WUSA9) -- Wall Street is open for business. Investors in the U.S. aren't the only ones with a vested financial interest.

The International Monetary Fund and World Bank have been holding their annual meetings in Washington.  Top finance officials and economists from all over the world have had a front row seat to what's happening on Capitol Hill.

Congress only has until Thursday to pass a debt ceiling increase or face default on its loans. 

International Monetary Fund chief Christine Lagarde says a lot hinges on the US's next move. "They are concerned because the U.S. is the biggest economy in the world because it trades with all of them because it has massive financial consequences for them as well. It was an international concern that was expressed," said Lagarde.

Lagarde has been warning if the US doesn't resolve the debt ceiling issue, American lawmakers risk causing a massive disruption round the world. That could tip the global economy into another recession. 

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