IMF Chief Warns on U.S. Debt

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.