US debt crisis can cause global financial turmoil, says IMF

The International Monetary Fund (IMF) on Tuesday warned that an imminent debt default by the US due to the government shutdown would result in disruptions in financial markets and could possibly trigger global economic turmoil. "Failure to lift the debt ceiling would be a major event," Olivier Blanchard, IMF's chief economist, said at a news conference at its headquarters in Washington. The top IMF official warned that the failure to raise the debt ceiling - that would result in the US defaulting on its international obligations - would have a long term adverse impact on the global economy and would have major consequences in the years to come.