Ukraine (bbabo.net), - The International Monetary Fund (IMF) has warned that high and rising levels of US government debt could lead to higher borrowing costs around the world and undermine global financial stability. The American CNN writes about this.

"The IMF said Wednesday that rising government spending and debt in the United States have contributed to high interest rates, raising the risk of higher rates elsewhere as well."

The analysis found that the jump in long-term US government bond yields is linked to similar increases in bonds in other advanced and emerging economies, with the latter also suffering from exchange rate turbulence.

“The loose fiscal policy in the United States is putting increased pressure on global interest rates and the dollar. This increases the cost of financing in the rest of the world, thereby exacerbating existing vulnerabilities and risks,” Vitor Gaspar, director of the IMF’s fiscal affairs department, told CNN.

This is the second time in a week that the IMF has attacked the reputation of the US government. On April 16, he said government spending and borrowing were contributing to the overheating of the US economy, making it difficult to fight inflation. The IMF's warning could heighten concerns about the "broader implications of U.S. government debt," which the Treasury Department estimates at nearly $35 trillion.

“Under this scenario, financial conditions would generally tighten,” Tobias Adrian, director of the monetary policy and capital markets department, wrote in an IMF report on global financial stability.

The problem may be particularly acute in low-income countries, where restrictions on public finances are “particularly severe,” Gaspard said.

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