Lagarde Tells US Lawmakers They Risk Tipping World into Recession

Christine Lagarde, Head of the IMF

THE INDEPENDENT: Stark warning from IMF chief comes as search for deal to extend debt ceiling shifts to Senate

American politicians risk causing a “massive disruption the world over” that could tip the global economy into another recession if politics gets in the way of raising the country’s debt ceiling and the ongoing government shutdown remains unresolved, Christine Lagarde, the head of the International Monetary Fund, warned today as the US Senate became the focus of talks to end the budgetary deadlock in Washington.

The stark assessment by Ms Lagarde, a former French Finance Minister, came after news that talks between the Republican Speaker of the House of Representatives, John Boehner, and President Barack Obama had broken down, putting the onus on the Senate leadership to craft a bipartisan pact to avert what experts predict would be financial catastrophe. » | Nikhil Kumar | New York | Sunday, October 13, 2013