Washington – President of the European Central Bank Christine Lagarde With a looming deadline for Congress to address the debt ceiling, he said on Sunday it was “impossible” for the US to default.
“I can’t believe they would allow the catastrophe of the United States to default on its debts. This is not possible,” he said. In an interview with Face the Nation, Lagarde said: “I can’t believe it will happen. But if it does, it will have a very negative impact not only in this country where confidence is shaken, but all over the world.”
Lagarde said she has ‘great confidence’ in the US
Lawmakers are scheduled to return to Washington on Monday after a two-week recess and are eyeing an approaching summer deadline to raise or suspend the debt ceiling. US hit $31.4 trillion in borrowing powers In January, the Treasury Department was forced to begin adopting “special measures” to continue paying bills.
But the Congressional Budget Office estimates that those measures will be exhausted as early as July, leaving the US at risk of defaulting for the first time in history without Congressional action.
Meanwhile, President Biden and House Speaker Kevin McCarthy met in early February to discuss the debt ceiling, and McCarthy said last month that asked for another round In negotiations, the two are at a dead end over how to deal with the debt ceiling.
Republicans in the House are demanding a plan to raise the debt ceiling, including cuts to federal spending, while the White House and Democrats pass Congress unconditionally a “clean” bill to raise the debt ceiling. I am asking you to
Lagarde said he had “tremendous trust” in the United States and urged the two countries to break the deadlock and find consensus on plans to address the debt ceiling.
“I understand politics. I’ve been involved in politics myself,” she said. “But there are times when the higher interests of the state have to take precedence.”
The U.S. debt default has become devastating and unprecedented, with Democrats accusing their Republican colleagues of playing irresponsibly with the economy. He then warned, saying cuts were needed to keep inflation down.
If the stalemate between Democrats and Republicans continues and both sides fail to reach an agreement to lift or suspend the debt ceiling, Lagarde warned there could be global repercussions.
“To be honest, this is the biggest economy,” she said. “It’s a major leader in economic growth around the world. You can’t let it happen.”
