European Central Bank president Christine Lagarde said she has great faith and belief in the United States The state will not pay its debts.

“I just can’t believe they would allow a catastrophe so big, big that the United States defaulted on its debt. This is not possible. I can’t believe it would happen. But if it did happen, it would have a very, very negative impact, not just for this country where trust would be questioned, but around the world,” she said told CBS in an interview.

Lagarde said the US is the world leader in economic growth and cannot allow default. “I understand politics, I’ve been in politics myself. But there comes a time when a nation’s higher interests must come first,” she said.

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speaker Kevin McCarthy in one Monday speech at the New York Stock Exchange will discuss the terms Republicans want Democrats to agree to in exchange for advances on the debt ceiling, Reuters reported.

Republicans have proposed capping annual spending growth at 1% for a decade, cutting regulation and increasing energy production, the report said.

Polarization: Asked about the increasing political pressure on certain political capitals to choose between the United States and China, Lagarde said it would result in economic disadvantages.

“Will the world economy be hit by 1 or X percent? There are several forecasts, all negative. So the decoupling and the way the world is bi-polarized would result in less economic growth and less prosperity in the world, more poverty around the world,” she said.

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