It is 'mission-critical' US raises debt ceiling - IMF chief

Christine Lagarde, managing director of the International Monetary Fund (IMF), has warned failure to raise the debt ceiling could be far worse than the current US government shutdown.

The country has been stuck in an impasse 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 more serious 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 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 saying: "T...