Global finance chiefs have called for the US to quickly resolve the political stalemate over the budget and debt ceiling to avoid damaging the world economy.
Top finance officials from China, Europe and Latin America joined International Monetary Fund managing director Christine Lagarde and World Bank president Jim Yong Kim in warning of the potential catastrophe looming if Washington DC is forced to slash spending because congress does not increase the statutory borrowing cap.
"They should have the wisdom to solve this problem as soon as possible," Gang Yi, deputy governor of the People's Bank of China, said during the World Bank-IMF annual meetings in Washington DC.
"We certainly need a very stable global economy," he said.
In New York, European Central Bank chief Mario Draghi said a stand-off between the Democrats and Republicans that lasts several weeks or months could "cause severe damage to the US economy and to the world".
"The world still doesn't believe that the US will not find a way out of this," Draghi said.
Lagarde and Kim both highlighted the dangers as Republicans offered a short-term fix to the impasse that was not sure to be accepted by President Barack Obama.
"It is not helping the US economy to have this uncertainty and this protracted way of dealing with fiscal issues and debt issues," Lagarde said.
"There will be very, very negative consequences for the US economy, and there will be very negative consequences outside of the US economy."
If the US is forced to default on its obligations, especially its debts, said Kim, developing countries will be deeply affected.