European Central Bank President Christine Lagarde has expressed disbelief that the United States could default on its debt, as lawmakers in Washington continue to clash over the country’s budget and debt ceiling. Her comments come as the US government runs out of money to pay its bills and faces the possibility of defaulting on its obligations for the first time in history. Lagarde, who has previously warned of the risks of a US default, urged lawmakers to quickly reach a deal to avoid damaging the global economy.
Christine Lagarde, the president of the European Central Bank (ECB), has expressed confidence that the United States will not default on its debt, warning that the repercussions would be disastrous for the global economy. Speaking on CBS’s “Face the Nation,” Lagarde stated that she believes in the United States and cannot imagine such a major disaster happening. However, she cautioned that a default would have a very negative impact, shaking confidence not only in the US but worldwide. Lagarde’s comments come as the US faces a potential debt default, with the Treasury Department employing extraordinary measures to avoid breaching the cap, but the ceiling must be lifted this summer to prevent a default.
In conclusion, despite the concerns raised by some about the possibility of a US debt default, ECB President Christine Lagarde remains optimistic that such a scenario is highly unlikely. As an experienced economist with a deep understanding of global financial markets, Lagarde’s assessment should provide some reassurance to investors and policymakers alike. Of course, the situation remains fluid and there are always risks to be navigated when it comes to matters of economic policy. Nonetheless, if Lagarde’s assessment is correct, it seems that the global economy may continue to move forward with relative stability in the weeks and months ahead.
