IMF chief warns of danger of potential US default

The country has been stuck in a government shutdown since 1 October, as the Republicans and the Democrats have failed to reach a decision over next year's budget since the weekend. However, Lagarde (pictured) said the US faces a much worse problem if it fails to raise the debt ceiling by 17 October, the day Washington hits its borrowing limit, as the country may be forced to default on its debt. She said that failing to raise the ceiling, which currently stands at $16.7trn (£10.3trn), would send shockwaves across the entire global financial system. She was quoted by the Telegraph s...