IMF warns of US shutdown impact

<p>The US government shutdown could lead to a global recession.</p>

The International Monetary Fund (IMF) has warned of the potential impact of the ongoing government shutdown in the US.

It was noted by the organisation's head Christine Lagarde that a global recession could be caused unless a deal can be reached soon.

In an interview with ABC's Meet the Press, she called for the debt ceiling to be raised ahead of the deadline on Thursday (October 17th).

She said: "If there is that degree of disruption, that lack of certainty, that lack of trust in the US signature, it would mean massive disruption the world over and we would be at risk of tipping yet again into recession."

Jim Yong Kim, president of the World Bank, has also warned that failure to reach a deal in the next few days could lead to a "dangerous" situation.

Recent talks between US president Barack Obama and Republicans in the House of Representatives were described as useful by both sides, but no agreement has been met yet.

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