European Central Bank President Christine Lagarde appealed to US politicians to resolve their standoff over the debt ceiling.
(Bloomberg) — European Central Bank President Christine Lagarde appealed to US politicians to resolve their standoff over the debt ceiling.
“If the United States was to default on its debt it would be a catastrophic development for its economy and for the global economy because of the size of the US economy, because of the depth of its financial sector and because of the totally unpredictable situation that they are facing,” she said.
“I have trust in the common sense and the civic sense of the leaders to reach an agreement — which otherwise would take us into a very, very negative development,” Lagarde said.
The ECB chief — commenting in an interview on the Buitenhof TV show aired Sunday — voiced her concerns as the US stares down a potential debt default that could send shock waves through the world economy. Treasury Secretary Janet Yellen has said the US could run out of cash to meet its obligations as soon as June 1.
President Joe Biden will hold a call with House Speaker Kevin McCarthy about debt-ceiling and budget negotiations during his flight back from Japan aboard Air Force One.
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