Christine Lagarde

IMF's Lagarde: Trade tensions threaten global economy

The head of the International Monetary Fund warned Thursday that the healthiest global economy in years is threatened by rising debt levels, volatile financial markets and a simmering trade dispute between the world's two biggest economies.

IMF Managing Director Christine Lagarde told reporters a U.S.-China trade war "will not be something that will affect only the two countries because the world is so interconnected. It will affect the global economy."

For now, the IMF expects the global economy to grow 3.9 percent this year, the fastest since 2011. But Lagarde says "we are seeing more clouds accumulating on the horizon." She cited trade tensions and...

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