Washington, Oct 25 (IANS) Despite a short-term deal to fund the federal government’s operation and increase the debt ceiling, the US should focus on solving its medium-term fiscal challenges, the International Monetary Fund (IMF) said.
The IMF welcomed the recent step taken by US Congress to fund the government by Jan 15 and lift the government’s borrowing authority by Feb 7, but “there needs to be adorable solutions to the debt ceiling”, IMF spokesman William Murray said Thursday at a press briefing, Xinhua reported.
The federal government was forced into the first shutdown Oct 1 in 17 years after Republicans tried to tie a government funding bill with President Barack Obama’s signature health care law.
“The US needs to come up with a clear medium-term plan for dealing with its fiscal challenges forward. That’s the critical issue at the moment,” Murray said.