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IMF Chief Warns on U.S. Debt

Says drastic cuts could result in “jobless recovery.”

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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.

Read it at BBC

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