IMF Chief Warns on U.S. Debt

    IMF Managing Director Christine Lagarde addresses a gathering at the Council on Foreign Relations in New York, Tuesday, July 26, 2011.

    Richard Drew / AP Photo

    Whose side will she take? Christine Lagarde, the new chief of the International Monetary Fund, has weighed in on the crisis over the debt ceiling as an Aug. 2 default date draws precariously near. It appears as though Lagarde may be siding with President Obama. She cautioned that drastic cuts could result in a “jobless recovery.” She also addressed the euro crisis, saying the global economy was still at risk as it emerges from a recession and called on EU leaders to tackle sovereign debt immediately.

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