IMF Chief Warns of Global Danger from U.S. Default
International Monetary Fund (IMF) chief Christine Lagarde warned that the United States has been hurt by too much fiscal consolidation. Its growth this year is predicted at just two percent. Failure to raise its debt ceiling could plunge global markets into chaos. “The U.S. has a special responsibility: to implement (normalization) in an orderly way, linking it to the pace of recovery and employment; to communicate clearly; and to conduct a dialogue with others,” said Lagarde.