Lagarde expresses confidence in US avoiding default and warns of US-China split impact on growth.

European Central Bank President Christine Lagarde expressed confidence that the US would not default on its debt, warning that such an event would have severe consequences globally. Lagarde called on US lawmakers to prioritize the higher interest of the nation and set politics aside when discussing the topic of raising the debt ceiling. The US hit its borrowing limit of $31.4tn in January, and if the debt ceiling is not raised by June, the federal government could run out of money. Analysts expect heightened market volatility, especially closer to the June deadline.