IMF boss Christine Lagarde
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IMF boss warns 'clock is ticking' on US debt

The new head of the International Monetary Fund Christine Lagarde has warned the "clock is ticking" on a deal to tackle the United States deficit.

Lagarde has called for a speedy resolution to the $14.3tn debt crisis, stating that a default or significant downgrading of the US signature would be 'very serious'

Unless politicians agree a package by 2 August the US may be unable to pay its bills, triggering an economic crisis.