WASHINGTON -- Concerns that the political impasse in American government will derail a fragile global economic recovery may well dominate meetings of world financial leaders in Washington this week.
In the run-up to meetings of the International Monetary Fund, the World Bank and the Group of 20 major economies, global financial leaders have been sounding loud warnings about the possibility of a U.S. debt default. They also worry about potential damage if the partial government shutdown continues.
These concerns are layered on top of ongoing anxiety over an expected reduction in the U.S. central bank's bond-buying program to stimulate the economy. The prospect of that reduction has put significant pressure on developing-country markets even before it has actually begun.