IMF: US should consider replacing debt ceiling with automatic adjustment mechanism

Gerry Rice, Director of the Communications Department at the International Monetary Fund (IMF), said on Thursday that it is important for the US government to find a debt limit solution that avoids a "counterproductive brinksmanship," per Reuters.

"The US should consider replacing debt ceiling with automatic adjustment mechanism or clear medium-term fiscal objective," Rice added.

Market reaction

This report doesn't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was down 0.52% on the day at 4,457.