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.
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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.