Lagarde warned that a US bankruptcy would have dire consequences for both the US economy and the global economy. He emphasized the size of the US economy, the depth of its financial sector and the unpredictability of the situation they face, he writes bloomberg.
According to Lagarde, she trusts the common sense and civic sense of leaders to reach agreement and avoid a very negative outcome.
Lagarde’s concerns come as the United States faces the prospect of a debt default, which could send shock waves through the global economy. US Treasury Secretary Janet Yellen warned that the country may run out of funds to meet its fiscal obligations as early as June 1.
Given the situation, President Joe Biden has agreed with House Speaker Kevin McCarthy to discuss the debt ceiling and budget on Monday.
COVER PHOTO: European Central Bank President Christine Lagarde speaks to the media as she arrives to work at the European Central Bank’s headquarters after she officially assumes her new position on November 4, 2019 in Frankfurt, Germany. Thomas Lunis/Getty Images
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