WASHINGTON (Reuters) - The head of the International Monetary Fund on Thursday warned that the fight over raising the U.S. government’s debt ceiling could be “catastrophic” for the global economy if not resolved in time.
“If it is not resolved appropriately by it being raised on time ... it could be catastrophic for the global economy,” IMF Managing Director Christine Lagarde told Reuters Insider television.
“I very, very strongly hope that all parties, all views will converge in the national interest of the U.S. economy and in the international interest of the global economy. To imagine that the U.S. economy would be in default, would not honor the payments that it owes is just unthinkable.”
Reporting by Timothy Ahmann; Editing by Chizu Nomiyama