ECB’s Christine Lagarde says she 'cannot believe' US will default on debt

Prominent US bankers and officials such as treasury secretary Janet Yellen have warned for months against bringing the US to the brink.

Faced with pressure for further rate increases to counter inflation, ECB president Christine Lagarde said a limited credit tightening might make the ECB’s task easier. Picture: AP Photo/Michael Probst, file

European Central Bank (ECB) president Christine Lagarde said she does not foresee the US defaulting on its debt, saying such an outcome would have dire consequences around the world.

“I have huge confidence in the United States,” Ms Lagarde said in an interview for CBS’s Face the Nation on Sunday.