Lagarde confident US won't default on debt, warns against choosing between US and China.

Christine Lagarde, president of the European Central Bank, expressed confidence that the US will not default on its own debt, stating that it would have a "very, very negative impact" both in the US and around the world. Lagarde also discussed the recovery of the global economy, citing Russia's war in Ukraine, banking sector instability in the US and Switzerland, and inflation as creating "a hollow of uncertainty around a recovery that we want to embed." The IMF holds a dimmer outlook, expecting economic growth to slow from 3.4% in 2022 to 2.8% in 2023.