The head of the International Monetary Fund said Wednesday that the U.S. and other wealthy nations need to urgently tackle mounting global debt levels that are weighing most heavily on low-income countries and straining the global financial system.

IMF Managing Director Kristalina Georgieva said that while U.S. Treasury Secretary Scott Bessent and other U.S. leaders recognize that the federal deficit and national debt have grown too high, just trying to grow the U.S. economy out of its more than $40 trillion in national debt would not suffice.

Rising bond yields, reflecting the higher premiums associated with greater risks, have meanwhile been disrupting financial markets.