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WASHINGTON (Reuters) - A default by the United States would like lead to a recession "or even worse," the chief economist at the International Monetary Fund said on Tuesday.
IMF chief economist Olivier Blanchard said a failure to lift the nation's debt ceiling would lead to dramatic cuts in government spending and "probably ... a lot of financial turmoil."
"I think what could be said is if there was a problem lifting the debt ceiling, it could well be that what is now a recovery would turn into a recession or even worse," Blanchard said.
Reporting by Anna Yukhananov and Lucia Mutikani; Editing by James Dalgleish